Parliament panel seeks higher investment rate & sets 8% growth target; urges reforms in energy and farm sectors

A parliamentary panel has pitched for raising India’s investment rate from 31% of GDP to 35% in order to sustain an ambitious annual growth target of 8% over the next decade. The Standing Committee on Finance, chaired by BJP leader Bhartruhari Mahtab, said a higher investment push, coupled with structural reforms and digital initiatives, is crucial to achieving long-term inclusive growth.The panel underlined that achieving the 8% target will require domestic-led growth, since external financing could widen the current account deficit. “Financing this may result in higher levels of current account deficit (CAD), which is challenging under current global circumstances, PTI reported. This emphasises the need for domestic-led growth, for which deregulation is crucial,” it said in its report.The committee called for a collaborative approach through the deregulation task force chaired by the cabinet secretary, saying such a model of cooperative federalism could help streamline land, labour, capital, and regulatory processes and create an investor-friendly environment.Energy and infrastructureThe panel urged the government to maintain sustainable, growth-oriented energy policies that prioritise affordability and efficiency while balancing climate commitments with economic and social goals. It asked the Ministry and the Central Electricity Authority to expedite pumped storage projects (PSPs), terming them critical to energy security and reducing import dependence.Tailored fiscal reforms for highly indebted states, it added, would help improve fiscal health while ensuring investment capacity in infrastructure and social development.Agriculture as growth driverCalling agriculture a pivotal driver of inclusive growth, the panel stressed a dual approach of addressing immediate challenges while pursuing long-term reforms. It noted that government measures such as maintaining buffer stocks, regulating supplies, and subsidising food items help stabilise prices and ensure affordable access.For productivity gains, it recommended fast-tracking digital initiatives, including digitisation of land records and the rollout of agri-stack to connect farmers with banking and credit systems. The panel said these tools should be scaled nationwide, with local youth trained for data collection, thereby improving accuracy and creating employment.The report also backed diversified crop production, stronger supply chains, and greater private participation in agri-tech as vital to boosting farmer incomes and transforming agriculture into a key growth engine.Harnessing opportunities amid global volatilityObserving that protectionism and geopolitical volatility dominate the global trade landscape, the committee said India must leverage the opportunity to expand markets while strengthening domestic manufacturing. It said the guiding principle of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas” should underpin the effort to build an Atmanirbhar Bharat.The panel highlighted the need to strengthen government finances, improve the quality of expenditure with focus on capital spending, and invest in people through higher wages, reskilling, and mental health support to drive productivity.Tech, inclusion and long-term roadmapThe committee stressed the role of artificial intelligence and data in effective governance, and recommended setting up an indigenous, government-owned AI server to address privacy concerns, boost efficiency, and harness data for policymaking.It concluded that India’s economic roadmap should go beyond the immediate $5 trillion economy goal to ensure sustained, inclusive, and resilient long-term growth. This, it said, would require a multi-pronged approach centred on infrastructure investment, balanced energy policies, support for MSMEs and women entrepreneurs, and innovation-driven development.