'India must develop…': Raghuram Rajan on what needs to be done to become a developed economy

Former Reserve Bank Governor Raghuram Rajan said that for India to become a developed country by 2047, the annual growth rate should be more than seven percent.

„At a seven percent growth rate, India's per capita income will rise from the current $2,400 to $10,000 in 2047, putting the country in the lower-middle-income bracket,” he said at a book launch in Kolkata.

Rajan co-authored the book 'Breaking the Mould: Reimagining India's Economic Future' with economist Rohit Lamba.

Rajan said that India should focus more on education and health to become a developed economy by 2047. India has maintained an average growth rate of six percent in the last 25 years, which is not an easy feat for any country.

Rajan emphasized the need for administrative reforms and focus on education and health to build a strong foundation. He stressed the importance of determining the future direction of India's growth, especially as the country's current demographic dividend will decline after 2050.

He also emphasized the need for balanced growth across all segments of society, as consumption growth is currently only strong at higher income levels.

Both Rajan and Lamba emphasized the importance of India producing high-value products and conducting research to support entrepreneurs in capturing the top of the value creation pathway. The former RBI governor said last month that India would still be a lower-middle economy if the potential growth rate continued at 6 percent annually with no increase in population by 2047. „If the country doesn't grow fast, it will grow old (in terms of population) before it gets rich, meaning the burden of an aging population has to be dealt with at that time,” he noted at the time.

READ  German train drivers begin a six-day strike, affecting travel and the economy

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany. Wymagane pola są oznaczone *