India’s Goal for 2047: Sustaining rapid growth is challenging

Source: The post India’s Goal for 2047 has been created, based on the article “Sustaining rapid growth is challenging” published in “Business standard” on 22nd March 2024.

UPSC Syllabus Topic: GS Paper 3- economy- growth and development

News: The article discusses India’s goal of becoming a developed country by 2047. It explains the challenges and factors needed for economic growth, comparing India’s progress with other countries and emphasizing the importance of good policies and global conditions.

What is India’s Goal for 2047?

Developed Country Status: India’s primary goal is to become a developed country by 2047, focusing on broad societal and economic development.

High-Income Economy: The target is to reach a per capita income of about US$14,000, aligning with the World Bank’s high-income country criteria.

Improving on Past Performance: Recognizing slower growth in earlier decades, the goal is to significantly accelerate development, similar to the post-1990s economic reforms.

What are the factors needed for India to become a developed country by 2047?

Economic Growth: India needs to maintain an 8% annual growth rate until 2047. This mirrors the growth rates of nations like South Korea and Singapore that have successfully developed.

Policy and Governance: Effective policies in areas like fiscal management, foreign trade, education, health, and law are crucial. This reflects the success factors of developed East Asian countries.

Global Context: India’s progress will be influenced by global economic and geopolitical situations, as seen in the examples of Sudan and Yugoslavia, where external factors heavily impacted their development trajectories.

Technological Progress: Adapting and innovating in technology is vital, similar to how China and East Asian countries have advanced.

Addressing Climate Change and Resource Scarcity: Mitigating climate impacts and managing resources efficiently is essential, akin to global challenges faced by all developing nations.

What challenges do developing countries face?

Lack of Resources: Developing countries often have limited capital, skills, and technology. For instance, Sudan, despite its natural resources, remains poor due to a lack of these key elements.

Political Instability: Civil unrest and wars greatly hinder progress. Sudan’s long civil wars have left it with a per capita income of just over $500.

Economic Policies: Changes in economic regimes can disrupt growth. Yugoslavia, for example, saw its growth and development halt due to political fragmentation after changing its economic system.

Global Economic Conditions: The broader economic environment greatly impacts these countries, influencing their growth trajectories and ability to develop.

Way forward

To achieve the status of a developed nation by 2047, India must sustain 8% annual economic growth, drawing lessons from East Asian countries’ rapid development. Implementing robust policies across education, health, and infrastructure, and adapting to global and environmental challenges, are crucial in this complex, arduous journey.

Question for practice:

Discuss India’s journey to become a developed country by 2047, highlighting the key factors essential for achieving this goal.