{"id":248318,"date":"2023-06-16T20:27:35","date_gmt":"2023-06-16T14:57:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=248318"},"modified":"2023-06-16T20:27:35","modified_gmt":"2023-06-16T14:57:35","slug":"pathways-to-a-viksit-bharat","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pathways-to-a-viksit-bharat\/","title":{"rendered":"Pathways to a Viksit Bharat"},"content":{"rendered":"\n

Source-<\/strong> The post is based on the article \u201cPathways to a Viksit Bharat\u201d published in the \u201cBusiness Standard\u201d on 16th June 2023.<\/p>\n

Syllabus: <\/strong>GS3- Development<\/p>\n

Relevance- <\/strong>Issues related in making India an advanced economy<\/p>\n

News<\/strong>– The Government of India in 2022 set itself the goal of a \u201cViksit Bharat\u201d.<\/p>\n

What is the meaning of an advanced economy?<\/strong><\/h2>\n

The size of the economy<\/strong> is important for many reasons. But, it does not alone qualify a country for advanced status.<\/p>\n

For instance, China is the world\u2019s second largest economy<\/strong>. But, it is not considered advanced. Its average citizen is four times poorer<\/strong> than the average Britisher and six times poorer <\/strong>than the average American.<\/p>\n

Similarly, India is now the world\u2019s fifth largest economy<\/strong>, having overtaken the UK. But, the average Indian is 20 times poorer<\/strong> than the average Britisher.<\/p>\n

In 2022, the International Monetary Fund <\/strong>categorised 41 countries as advanced economies<\/strong>. But, its definition is not clear or consistent<\/strong> over time.<\/p>\n

The World Bank uses a cut-off of gross national income per capita of $13,205 in 2022 prices<\/strong>. It classifies around 80 countries in the \u201chigh-income\u201d category. <\/strong><\/p>\n

The United Nations Development Programme adds a human dimension through HDI index<\/strong> to GNI per capita. It classifies 66 countries into the \u201cvery high human development\u201d category.<\/strong> It is a rough definition of an advanced economy.<\/p>\n

What is the level of growth in GNI and HDI needed for India to become an advanced economy?<\/strong><\/h2>\n

The World Bank and the UNDP have clear criteria to define an advanced economy.<\/strong> It will take 25 years at a growth rate of 7% per annum<\/strong> in GNI per capita to reach today\u2019s developed country\u2019s GNI per capita of $13,205.<\/p>\n

This means GNI must grow at around 8% per annum for the next 25 years<\/strong>, factoring in population growth.<\/p>\n

India\u2019s HDI score in 2021 was 0.633. To reach the cut-off of very high human development at 0.8 will require HDI annual growth of around 0.9% per annum. <\/strong><\/p>\n

India\u2019s growth in HDI was around 1.25% per annum between 1990 and 2021. India\u2019s HDI grew at only 0.88 per cent per annum from 2010-21<\/strong>. So, to reach the very HDI category will require to keep this rate for the next 25 years.<\/p>\n

India must use its demographic dividend<\/strong> much better than it has done so far. Rising inequality has also hurt its score.<\/p>\n

The UNDP calculates that India\u2019s HDI score<\/strong> declines by 24% due to inequality<\/strong>. Halving inequality would increase India\u2019s HDI score above 0.7<\/strong> and classify India into the high HDI category. <\/strong><\/p>\n

What is the way forward for India to achieve the goal of a \u201cViksit Bharat\u201d?<\/strong><\/h2>\n

To become an advanced economy, India not only needs a more \u201cSamruddha Bharat\u201d<\/strong> but also needs to make a more \u201cSajit Bharat\u201d (inclusive)<\/strong>.<\/p>\n

Many upper middle-income countries<\/strong> such as Argentina and Brazil are stuck in the so-called middle-income trap<\/strong>. They did not build the institutional strength<\/strong> required to make a successful attempt to become a developed economy.<\/p>\n

India must first strive to reach the upper middle-income statu<\/strong>s that requires a GNI per capita of $4,255 in 2022 prices<\/strong>. If India grows at 7% in GNI per capita, it will reach the upper income status by around 2032. <\/strong><\/p>\n

Likewise, the UNDP has a \u201cHigh\u201d human development category<\/strong>. India with an HDI score of 0.633 can reach that category by about 2032 <\/strong>as well.<\/p>\n

To reach this intermediate stage, there is a need for stronger institutions, infrastructure, and human capital. <\/strong><\/p>\n

If India reaches this stage, it could fall into the middle-income trap<\/strong>. Once there with stronger human capital and institutions<\/strong>, India can plan for \u201cViksit Bharat\u201d @ 100<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source- The post is based on the article \u201cPathways to a Viksit Bharat\u201d published in the \u201cBusiness Standard\u201d on 16th June 2023. Syllabus: GS3- Development Relevance- Issues related in making India an advanced economy News– The Government of India in 2022 set itself the goal of a \u201cViksit Bharat\u201d. What is the meaning of an… Continue reading Pathways to a Viksit Bharat<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-248318","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":24,"cached_at":1698387852,"cached_date":1698470329},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/248318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=248318"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/248318\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=248318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=248318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=248318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}