Investment, States and India’s Path to 2047: Why Convergence Is the Real Growth Challenge

This highlights a crucial insight: investors respond to outcomes, not intentions. The ability to translate plans into functioning assets reflects institutional capacity, regulatory efficiency and political commitment.

Policy Levers for States

Two broad policy directions emerge from this evidence. First, states must prioritise sustained public capital expenditure. Well-targeted capex creates infrastructure, generates spillover benefits and crowds in private investment.

Second, states need to strengthen project execution systems. Faster approvals, predictable regulation, effective dispute resolution and time-bound clearances help ensure that projects move from announcement to completion with minimal friction.

Together, these measures improve the overall investment climate and strengthen linkages with micro, small and medium enterprises, which often supply goods and services to large projects.

Why Investment-Led Convergence Matters for Inclusive Growth

If investment spreads more evenly across states, growth can accelerate in currently lower-income regions, enabling convergence over time. This broadens the base of India’s growth story, ensuring that economic gains are shared more widely across regions and populations.

For a country aspiring to be developed by 2047, the lesson is clear. Broad-based growth will not occur automatically. It must be built deliberately—state by state—through public investment that catalyses private capital, governance that delivers on commitments, and institutions that convert intentions into productive capacity.