By 2047 India must accomplish these goals in order to become a developed nation: Report
India's economy is currently the fifth biggest in the world after its GDP hits $5 trillion and it is expected to become the third biggest in the world by 2027.
According to a latest report, India can achieve the standard of living of a developed nation and grow its GDP to $30 trillion by 2047. An approach paper that summarized the vision for developed India (viksit bharat) was presented on Saturday, July 27. It states that if India is to by more than nine times its current value of $3.3 trillion, and the country’s per capita income, which is now $2,392 annually, must increase by eight times.
India’s economy is currently the fifth biggest in the world after its GDP hits $5 trillion and it is expected to become the third biggest in the world by 2027.
India’s $30 Trillion Economy Projection: Implications and Challenges
India’s potential to become a $30 trillion economy is a prospect that suggests a transformative impact on the nation’s economic landscape. This projection, as outlined in a recent report, not only underscores the growing economic capabilities of India but also highlights the broader implications for poverty alleviation, income distribution, and long-term economic growth.
Economic Growth and Middle-Class Expansion
The projection of a $30 trillion economy signifies a substantial increase in national wealth and economic activity. The middle class, which was estimated to number 432 million by 2021, is poised to become a crucial driver of this economic expansion. As the middle class grows, it has the potential to fuel consumer demand, investment, and overall economic dynamism. If the growth is equitable and inclusive, it could lead to widespread prosperity and significant reductions in poverty. This scenario envisions a shift from wealth being concentrated among a small elite to a more distributed economic benefit across the population.
Challenges of Achieving High-Income Status
To transition from a middle-income to a high-income nation, India needs to achieve an annual growth rate of 7 to 10% over the next 20 to 30 years. This ambitious target is supported by the July 27 document, which highlights that very few countries have successfully made this leap. The document cites structural, institutional, and socioeconomic factors as barriers that need to be addressed. Avoiding the middle-income trap—where countries struggle to break out of middle-income status and reach high-income levels—is a critical challenge.
Addressing the Middle-Income Trap
The middle-income trap is a significant concern for many developing nations, including India. Historically, only a handful of middle-income countries have advanced to high-income status. The reasons for this stagnation include insufficient structural reforms, inadequate institutional development, and other socioeconomic challenges. The report stresses the importance of identifying and overcoming these barriers to ensure sustained growth and progress.
Vision for Viksit Bharat @2047
India’s vision for 2047, termed “Viksit Bharat @2047,” aims to set specific objectives, plans, and guiding principles to achieve high-income status. This vision involves detailed strategies and actions based on key themes, including economic reform, infrastructure development, and social inclusivity. The goal is to create a comprehensive plan that drives economic growth while addressing social and structural challenges.
Youthful Demographics and Workforce Potential
Another critical factor in India’s economic future is its demographic profile. The report notes that India’s working-age population is projected to be around 112 crore, making it the largest workforce globally. This youthful demographic presents both opportunities and challenges. Leveraging this vast workforce effectively can drive economic growth and innovation. However, it also requires substantial investments in education, skill development, and employment generation to fully realize its potential.
India’s ambition to become a $30 trillion economy reflects its growing economic strength and potential. However, achieving this goal requires addressing significant challenges, including breaking free from the middle-income trap and ensuring inclusive growth. By focusing on strategic reforms and leveraging its demographic advantages, India can work towards realizing its vision of Viksit Bharat @2047, paving the way for a more prosperous and equitable future.
The journey to becoming a high-income nation is complex and demanding, but with careful planning and execution, India has the potential to transform its economic landscape and improve the quality of life for its citizens.
You might also be interested in – For developed, powerful economy goal, India needs to shed weight: Study
