India’s remarkable economic transformation in recent years is no coincidence. It is the result of a meticulously crafted strategy, executed with unwavering commitment under visionary leadership. This success is underpinned by four key pillars: investments in physical, social, and digital infrastructure; inclusive growth initiatives; manufacturing and innovation; and governance reforms. Each of these pillars has played a critical role in driving India’s growth and lifting millions out of poverty. As Nigeria looks to accelerate its economic development, there are valuable lessons to be drawn from India’s approach.
Pillar 1: Investments in Physical, Social, and Digital Infrastructure
India’s commitment to infrastructure development has been pivotal in driving its growth. Over the past decade, the country has significantly increased public investments, rising from €36 billion in 2014 to an impressive €127 billion annually. This surge in capital expenditure has fueled massive projects, including the construction of over 31,000 kilometers of new railway tracks—equivalent to the size of Germany’s entire railway network—and 44,000 kilometers of new highways, surpassing the combined networks of Germany, Belgium, and the Netherlands.
In addition to physical infrastructure, India has prioritized digitalization as a cornerstone of its economy. The Digital India program, launched a decade ago, aims to democratize technology access, and its impact has been revolutionary. The Unified Payments Interface (UPI), India’s digital payment system, boasts over 400 million users, processing nearly 17 billion transactions monthly with an annual transaction value of $2.8 trillion. This system has not only streamlined payments but also fostered financial inclusion by bringing millions of unbanked citizens into the formal economy.
Lessons for Nigeria:
For Nigeria, a focus on infrastructure investment is critical. Improved transportation networks, such as railways and highways, can unlock economic potential, particularly in rural areas. Similarly, leveraging technology to build robust digital infrastructure can enhance financial inclusion and stimulate entrepreneurial activity. Nigeria’s existing fintech sector, which is already thriving, could be further expanded by learning from India’s UPI model.
Pillar 2: Inclusive Growth
India’s inclusive growth programs have been transformative, directly addressing poverty and inequality. One of the standout initiatives is the provision of free cooking gas connections to 100 million families, significantly reducing health risks and time burdens associated with traditional cooking methods. Additionally, India’s healthcare program now covers 350 million citizens, with recent expansions offering free healthcare for all citizens above the age of 70.
The impact of these programs is staggering: over the past decade, 250 million Indians have been lifted out of poverty, an achievement unparalleled in human history.
Lessons for Nigeria:
Nigeria can adopt similar inclusive strategies to address poverty and inequality. Programs providing affordable energy solutions, such as subsidized LPG or renewable energy sources, could improve living standards for millions of Nigerians. Additionally, expanding access to universal healthcare, particularly for vulnerable populations, can enhance productivity and well-being. These initiatives would align with Nigeria’s ongoing efforts to reduce poverty and foster sustainable development.
Pillar 3: Manufacturing and Innovation
India has embraced manufacturing and innovation as catalysts for job creation and economic diversification. Through initiatives like Make in India and Startup India, the country has established itself as a global manufacturing hub while fostering a thriving startup ecosystem.
India’s mobile manufacturing industry exemplifies this transformation, growing from €2 billion to nearly €50 billion in just a few years. This growth has generated millions of jobs and reduced the country’s reliance on imports. Additionally, India’s semiconductor industry, a recent focus, is rapidly expanding, with five major projects already under construction.
In the startup space, India has witnessed exponential growth. From fewer than 500 startups a decade ago, the country now boasts over 150,000 startups and more than 100 unicorns. These achievements underscore India’s commitment to fostering innovation and entrepreneurship.
Lessons for Nigeria:
Nigeria’s economy, heavily reliant on oil, urgently needs diversification. By investing in manufacturing and fostering a culture of innovation, Nigeria can create jobs and reduce its dependence on imports. Programs modeled after Make in India could attract foreign direct investment and encourage local production, particularly in sectors like technology, agriculture, and renewable energy.
Similarly, Nigeria’s burgeoning tech ecosystem has the potential to rival India’s startup success. With targeted support, such as access to funding, incubation programs, and mentorship, Nigerian startups could drive economic growth and position the country as a hub for innovation in Africa.
Pillar 4: Governance Reforms
India’s governance reforms have been instrumental in creating an enabling environment for growth.
The principle of “minimum government, maximum governance” has streamlined administrative processes and reduced bureaucratic hurdles. Over 1,500 outdated colonial-era laws have been repealed, and 40,000 unnecessary compliance requirements have been eliminated.
This approach has fostered ease of doing business, attracting investors and empowering citizens. Additionally, India has replaced archaic laws with modern regulations that align with contemporary needs, ensuring that governance is responsive and efficient.
Lessons for Nigeria:
Nigeria can benefit from a similar reform agenda. Simplifying regulatory frameworks, eliminating redundant laws, and reducing bureaucratic inefficiencies can enhance the ease of doing business.
These measures would attract both domestic and foreign investment, creating a more dynamic economic environment.
Moreover, adopting digital governance tools, as seen in India, could improve service delivery and increase transparency. For instance, digitizing government services could reduce corruption and ensure that resources reach their intended beneficiaries.
A Roadmap for Nigeria’s Growth
By adopting and adapting India’s four-pillar strategy, Nigeria can unlock its economic potential and achieve sustainable growth. Here’s a roadmap:
Invest in Infrastructure
Prioritize large-scale investments in transportation, energy, and digital infrastructure.
Collaborate with private sector players to accelerate development.
Promote Inclusive Growth
Implement programs targeting energy access, healthcare, and education for vulnerable populations.
Leverage technology to expand financial inclusion and social welfare delivery.
Foster Manufacturing and Innovation
Create policies that incentivize local production and reduce import dependency.
Invest in the tech ecosystem, providing funding and mentorship for startups.
Reform Governance
Simplify regulatory processes and repeal outdated laws to attract investment.
Use digital tools to enhance transparency and accountability in governance.
India’s economic success is a testament to the power of strategic planning and decisive action. Its focus on infrastructure, inclusivity, innovation, and governance has not only transformed the nation but also set an example for other developing economies.
For Nigeria, the lessons from India are clear: with bold investments, inclusive policies, and governance reforms, the country can chart a path toward sustained growth and prosperity. By embracing these principles, Nigeria can unlock its potential as a global economic powerhouse and improve the lives of millions of its citizens.
