In a little over two decades from now, India will be celebrating 100 years of independence.
PM Modi had recently announced that India is targeting to become a developed nation by 2047. Is it an achievable goal? Let's find out
The performance of Indian Economy has been worth appreciating in 2022, the year that was a roller coaster ride, owing to geopolitical issues, financial troubles, etc.
According to IMF, India will overtake Germany & Japan to become the world's 3rd largest economy by FY28.
India's GDP has grown from
₹ 2.7 trillion in 1947 to around ₹ 150 trillion in 2022. India is currently a developing nation.
However, it is expected that if India continues to grow at a rate of 7-7.5% for the next two decades or so, it can become a developed country by 2047.
India: a developing nation
EAC-PM (Economic Advisory Council to the Prime Minister) Chairman Bibek Debroy believes that India can become an upper-middle-income country by 2047 if it grows at a rate of 7-7.5%.
India is currently a lower middle- income economy and in order to become a developed nation, India needs to work on its per-capitaGDP which was $2,277 in 2021.
This was behind the per-capita GDP of China ($12,556.3), United States ($69,287.5) and UnitedKingdom($47,344.4).
Challenges ahead...
Hunger: India ranked 107th among 121 countries on the Global Hunger Index (2022), worse than Nepal, Sri Lanka, Pakistan, etc.
Income Inequality: The income inequality in India is quite poor with the top 10% holding 57% of national income.
Therefore, India needs to address these problemsto become a developed nation by 2047.
Around 25% of India's population is illiterate and despite having a vast working-age population
India has high unemployment rates & all these factors combined pose threat to India's dream of becoming a developed country.
Next question is, how long will India take to become the world's biggest economy?
Assuming that INR remains stableagainst the USD, Indian Economy will have to grow at a rate of
14% every year to become world'sbiggest economy by 2047.
Interestingly, during 2006-11, Indian Economy had been growing at 14% every year.
India is increasingly attracting global investments & the recent discovery of 5.9 million tonnes of Lithium reserves in Jammu & Kashmirwill be a game changer for Indian Economy.