According to the Reserve Bank of India, if India has real GDP growth of 7.6% annually for the next 25 years, it could attain developed status by 2047. On August 15, 2022 — the 75th year of India’s independence — Prime Minister Narendra Modi laid down a vision for the next 25 years to become a developed nation by 2047.
During 2022-23, India recorded a growth of 7.2 per cent. The RBI’s projection for GDP growth for the current fiscal year is 6.5 per cent which is providing an indicative road map for enabling India to become a developed country by 2047-48.
India has to boost its industrial sector in order to re-balance its economy and increase the industrial sector’s proportion of GDP from the current level of 25.6% to 35% by 2047–2048.
Agriculture and services activity would have to grow at 4.9 per cent and 13 per cent per annum, respectively, in the coming 25 years with their sect-oral shares in GDP at 5 per cent and 60 per cent, respectively, in 2047-48.
It also stated that India’s per capita GDP must increase 8.8 times from its current level in order for it to become a developed nation by the year 2047. In other words, the USD 2,500 per capita GDP that is currently in place must increase to USD 22,000.
In order to achieve this path development requires investment in physical capital and comprehensive reforms across sectors covering education, infrastructure, healthcare and technology to raise productivity. Collaboration between the government, private sector, civil society and citizens is essential for driving this transformation.
As per World Bank classification, a country with a per capita income of USD 13,205 or more in 2022-23 is classified as a high-income country.
The International Monetary Fund (IMF) classifies countries into two major groups: Advanced Economies (AEs) and Emerging Market and Developing Economies (EMDEs). This is based on three criteria — per capita gross domestic product, export diversification and global financial integration.
In economic history, sustaining high growth for an extended period of time is not unusual. The fact that more recent occurrences of sustained high growth phases have occurred emphasizes the significance of technology and globalized markets in doing so.
India must adopt a multi-pronged strategy in order to utilize the enormous labor pool productively and take advantage of development prospects in knowledge-based industries, it was stated.
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