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What South Africa can learn from India’s growth: 5 practical reforms to boost jobs and investment

India is currently the world’s fastest-growing major economy. South Africa isn’t close. The gap between India’s 8.2 percent growth in the last quarter and South Africa’s 0.8 percent isn’t just a number. It reflects two very different paths, one built on long-term planning and steady execution, the other slowed by delays, uncertainty and weak follow-through.

What South Africa can learn from India’s growth: 5 practical reforms to boost jobs and investment Image: Unsplash

Both countries sit within BRICS. Both have young populations, democratic systems, deep inequality and plenty of unrealised potential. Over the past decade, India turned policy intent into sustained momentum. South Africa remained stuck in low single digits. India’s story now offers a useful mirror for South Africa, and an important reminder for brands, policymakers and businesses. Growth doesn’t happen without measurement. If you want to know how to grow, you need to know how to track progress.

What powered India’s growth?

India’s 8.2 percent didn’t appear out of thin air. It reflects a decade of deliberate choices that started compounding over time.

1. Tax and Regulatory Reform
For years, India’s tax system was known for complexity. The Goods and Services Tax simplified that mess by replacing a patchwork of state and national levies with a single structure. It cut friction in trade and logistics and helped boost compliance. Income tax relief put more cash in the pockets of ordinary households, which fed directly into consumer spending. Together, these shifts broadened the tax base and gave government more room to invest.

2. Building Infrastructure at Scale
India didn’t only reform. It built. Public capital expenditure soared. More than ₹11.2 trillion was allocated in the FY26 budget for roads, rail and energy. Production Linked Incentive schemes attracted global and domestic manufacturers in areas like electronics, pharmaceuticals and electric vehicles. Construction jobs followed, then local supply chains, then export gains. The economy started reinforcing itself.

3. Digital Public Infrastructure
India’s digital foundation may be its most distinctive advantage. UPI became the default way to pay for everything from groceries to taxis. The country recorded more than 172 billion digital payment transactions in 2024. Digital IDs, e KYC and interoperable public platforms brought millions into the formal financial system. Transaction costs dropped. Small businesses gained new tools and markets. Policymakers gained real-time data they could actually use.

4. Labour and Business Reform
Reforms here weren’t perfect, but they moved. Labour codes were consolidated. Hiring became more flexible while bringing more workers into formal protections. Single-window clearances and MSME deregulation cut down the time needed to start or grow a business. Manufacturing topped 9 percent growth in Q2 FY26. Services, particularly finance and professional services, continued to run in double digits. Agriculture remained steady.

5. Growth That Reaches Further
India linked growth to inclusion and cleaner energy. Rural electrification expanded alongside solar. Direct benefit transfers used digital systems to limit leakages. The thread running through this period was simple. Plan. Execute. Use data to check if things are working.

South Africa’s reality

South Africa knows its own constraints. Growth stuck at the one percent mark. Youth unemployment at crisis levels. Energy shortages that drag down productivity. Inequality that sits like a weight on the country’s ability to grow.

But the country also starts from a position many emerging economies would envy. Strong financial markets. Deep corporate expertise. A capable services sector. A strategic position at the tip of the continent. The issue isn’t potential. It’s consistency and measurement. South Africa hasn’t had a coherent growth strategy that’s tracked and delivered with discipline.

Five lessons South Africa can take from India

1. Simplify and Modernise the Tax and Regulatory Environment
South Africa’s compliance landscape is heavy, especially for smaller firms. India’s GST example shows how simplification can widen participation and ease the burden on business. South Africa could streamline VAT and key business taxes and use digital platforms and e invoicing to cut time and friction. The indicators to watch are straightforward. How long does compliance take. How fast is the formal sector growing. Is tax buoyancy improving.

2. Put Infrastructure at the Centre of the Story
India treated infrastructure as a growth engine. South Africa could do the same. Energy must come first, particularly renewables and grid upgrades that stabilise supply. Strategic transport corridors are another opportunity, especially those that support regional trade and tourism. What matters isn’t only how much is spent. It’s whether projects get delivered, whether logistics improve, and whether jobs and productivity rise as a result.

3. Build a South African Version of Digital Public Infrastructure
India’s UPI changed daily life. South Africa already has strong financial players and a tech-literate population. A national e payment system with open standards could accelerate adoption for citizens and small businesses. Paired with a reliable digital ID system, it would ease KYC, welfare distribution and SME credit access. The metrics are easy to track. Transaction volumes, adoption rates, cost per transaction and the number of first time account holders.

4. Back MSMEs and Township Enterprises
India’s MSMEs produce about 30 percent of GDP. They employ millions. South Africa’s township and rural enterprises could play a similar role if support is targeted and real. Incentives that focus on actual clusters, export potential and local manufacturing matter more than long lists of programmes. Track SME survival rates, access to finance, their contribution to exports and how many jobs smaller firms create.

5. Tie the Green Transition to Jobs
India didn’t treat renewables as a side project. It linked rural electrification to solar in a way that created jobs and expanded access. South Africa can build something similar by pairing renewable rollouts with local manufacturing and training pipelines. Community ownership models in high unemployment regions could shift income patterns. The key metrics aren’t only megawatts. They are jobs per megawatt, community income and reductions in load shedding.

Why measurement matters

India’s progress wasn’t only about policy. It was about checking results, adjusting where needed and communicating clearly. South Africa needs that same discipline.

1. Policy and Economic Outcomes
Growth by sector. Employment. Productivity. SME participation. Digital inclusion. Energy mix. These indicators should be tracked and published consistently.

2. Reputation, Narrative and Trust
Growth depends partly on public confidence. Media and communication signals shape that confidence. Leaders need to know how South Africa is framed in local and global media. Are stories focused on reliability, governance or opportunity. How does sentiment compare with peers like India. Tracking these signals shows whether policy messages are landing.

3. Brand and Behavioural Impact
For businesses, growth also depends on perception. Are investors and consumers seeing South Africa as risky or resilient. Are brands investing in the areas with real growth potential, not just media noise. Ornico’s measurement tools sit here. They help organisations see where they truly stand and where they’re likely to grow.

A Practical roadmap for South Africa

Phase 1, the Next 12 Months, Build the Rails
Simplify priority tax and regulatory bottlenecks. Launch or expand digital payment and ID systems. Measure whether compliance times drop, whether digital transactions rise and whether sentiment around ease of doing business improves.

Phase 2, One to Three Years, Unlock Multipliers
Upgrade the energy grid and ramp up renewables. Invest in transport corridors that cut time to market. Back MSMEs and township enterprises with real clusters and export opportunities. Track logistics performance, energy reliability and shifts in investor sentiment.

Phase 3, Three to Seven Years, Embed Inclusive and Green Growth
Scale renewable industries. Modernise labour markets with a focus on youth and women. Look at income and job trends in high unemployment regions and shifts in emissions intensity and energy mix. Monitor how South Africa’s national brand is described in media and markets.

From insight to action

India’s progress isn’t a perfect blueprint, but it shows what steady reform and clear measurement can unlock. South Africa has its own path to chart, and its own choices to make, yet the principles still hold. Simplify the operating environment. Build the foundations that let growth compound. Put smaller enterprises and the energy transition at the centre. Track everything that matters, not just the numbers that are easiest to publish.

That is how a country, a sector or a brand moves from aspiration to acceleration.

And that is the essence of Ornico’s promise: to help South Africa’s leaders, marketers and businesses not only grow, but to truly KNOW HOW TO GROW. DM

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