India’s economic development is one of the most remarkable transformations of modern times. Once an agrarian economy,at independence in 1947, a large share of the nation’s output and employment came from agriculture and allied sectors,the country has emerged in the 21st century as a global hub for services. By recent estimates, the services sector now accounts for about 54.9 per cent of India’s gross value added (GVA) (for the year 2024-25). Industries such as information technology, financial services, and telecommunications have propelled India to the forefront of digital innovation and global outsourcing platforms.

Yet this impressive narrative of structural change hides as many challenges as opportunities. The journey from agriculture to services is by no means complete, and the very aspects that enabled India’s ascent now demand deeper reforms if the next phase of growth is to be inclusive and sustainable.

At independence, agriculture (and allied activities) contributed roughly half of GVA in India. Over the decades, this share has declined dramatically,to around 17.9 per cent in 2024-25. While this signifies successful structural transformation, the employment burden remains heavily skewed; a large fraction of the population remains engaged in agriculture, even as its share in output shrinks. If India is to continue rising, the productivity of every worker and every rupee of output must improve.

The services sector’s ascendance is clear. From about 50.6 per cent of GVA in FY14, its share has risen to roughly 55 per cent by FY25. Export-oriented services,especially IT, business process outsourcing, financial technology, have strengthened India’s position in the global value chain. For example, the share of services exports among global services rose to around 4.3 per cent in recent years. States such as Karnataka, Telangana and Kerala lead the way; Karnataka reported a services-GVA share of 62.3 per cent, Telangana 60.3 per cent in recent reports.

But what has been enabled must now be improved, and what has been structural must now be inclusive. There are five key arenas in which India’s reforms must deepen if the nation is to both sustain high growth and ensure that growth delivers wellbeing across the length and breadth of society; land, labour, judiciary (conflict resolution), agriculture, and ease of doing business.

Key Areas For Reform 

Land reform is foundational. In rural India especially, fragmented land holdings, unclear property rights, outdated tenancy laws and land-record systems have hindered productivity, impeded investment and constrained growth. If land is to become a productive asset rather than a liability, we need digitised land records, clear titles, transparent transactions and regulatory simplicity. Unlocking this means better farming incomes, easier infrastructure deployment, and higher value creation across sectors. 

Labour reform is equally crucial. India’s workforce is young – a major demographic asset – yet a large part remains in the informal sector, lacking job security and predictability. At the same time, industry seeks flexibility to innovate, scale and create jobs. The right reform will balance these demands; simpler labour laws, yet social protection; easier hiring and retrenchment, yet dignity and rights for workers. Raising productivity per worker,not just adding jobs,must be the objective.

Judicial and conflict-resolution reform cannot be an afterthought. Delays in contract enforcement, protracted disputes, and a clogged court system raise transaction costs for business and deter investment, both domestic and foreign. A well-functioning legal system is one of the most powerful enablers of development. India must invest in digital courts, mediation mechanisms, fast-track commercial divisions, and procedural simplicity so that justice is not just promised but delivered. Justice delayed is development denied.

Agricultural reform must move beyond subsidies and traditional support structures. With agriculture’s share in output diminished though employment remains high, productivity must leap. Farmers need technology, access to secure markets, freedom of crop choice, post-harvest infrastructure, and linkage to value chains. Standing still is no option. Allied sectors such as horticulture, livestock and fisheries are expanding and can become growth engines within rural economies. Modernising agriculture is not charity,it is economic necessity.

Ease of Doing Business must be more than a slogan. For entrepreneurs, start-ups, investors and ordinary citizens, ease means predictable rules, transparent regulation, speedy clearances, minimal red-tape and institutional trust. When the state acts as an enabler rather than a bottleneck, innovation and enterprise flourish.

Push For Structural Transformation

All of this brings us back to a fundamental truth; structural transformation is as much about mindset as mechanics. The shift from agriculture to services has been momentous, but it cannot deliver its full potential if productivity, inclusion and institutional strength lag behind.

There’s plenty of grist for the mill here. This is not about faith, politics, or gossip, this is about the real pudding, the substance that leads to progress and wellbeing. But the proof of the pudding lies in the eating, and that can happen only if we, the people, are willing to taste it, that is, to participate, to demand, to push our institutions to deliver.

We, the citizens, should be clamouring for genuine reforms, reform in land, labour, judiciary, agriculture, and business enablement. These are not technical abstractions; they are the very foundations of livelihoods, productivity, fairness and hope. When land reforms unlock value, labour reforms raise dignity, judicial reforms restore trust, agricultural reforms empower millions, and business reforms unlock enterprise,the result will not just be higher GDP numbers, but a stronger, fairer, more prosperous India. 

We must not be passive spectators to India’s growth story, we must be active contributors. Governments can announce frameworks, but true change happens when society demands it. The clamour for reform should rise from every classroom, small business, farm, office and courtroom. When we insist that rules be transparent, processes be efficient, institutions accountable, then growth becomes not merely a statistic but a lived reality.

India’s transformation is often measured in GDP figures, foreign direct investment, or the number of unicorn startups. But beyond that lies a deeper shift, a shift in mindset and expectation. A nation that once viewed wealth creation with suspicion is now recognising enterprise and innovation as engines of progress. From global‐scale IT services to digital governance platforms to a burgeoning fintech ecosystem, India has shown what coordinated vision, disciplined execution and talent can achieve.

Better Governance, Bureaucratic Efficiency

Still, the journey is far from over. To sustain high growth and ensure it reaches all corners of society, India must invest as much in its governance and institutional architecture as it does in technology and human capital. Bureaucratic efficiency, procedural integrity and transparency will determine whether the next 25 years bring inclusion or inequality.

The real taste of the pudding, the real measure of progress, will be revealed only when the average Indian experiences opportunity, fairness and security as everyday realities. When a dispute is resolved in weeks instead of years, when a farmer receives fair price directly, when a start-up gets clearance swiftly, when a citizen is treated with respect in a government office, then only the transformation will have occurred deep down.

India’s promise lies not in blind optimism, but in informed participation and uncompromising demand for better. If we, as a society, can sustain the momentum of reform, if we can demand and ensure institutions that deliver, then this nation of a billion dreams will continue not just to rise in numbers but to shine in spirit.

The grist is ready, the mill is turning; it is up to us to make sure the flour of progress feeds every citizen equally. That, indeed, will be the proof of the pudding.

 (The author is an Indian Army veteran and a contemporary affairs commentator. The views expressed are personal. He can be reached at  kl.viswanathan@gmail.com )