{"id":253557,"date":"2023-07-26T20:32:20","date_gmt":"2023-07-26T15:02:20","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=253557"},"modified":"2023-08-31T10:35:23","modified_gmt":"2023-08-31T05:05:23","slug":"express-view-indias-road-to-2047","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/express-view-indias-road-to-2047\/","title":{"rendered":"Express View: India\u2019s road to 2047"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cExpress View: India\u2019s road to 2047\u201d <\/strong>published in <strong>\u201cThe Indian Express\u201d <\/strong>on <strong>26th July 2023<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian economy and growth<\/p>\n<p><strong>Relevance:<\/strong> Development model for high growth<\/p>\n<p><strong>News- <\/strong>\u00a0In his Independence Day speech last year, Prime Minister Narendra Modi laid out his vision for India to achieve developed country status by the 100th year of its independence.<\/p>\n<p>A recent study by economists at the Reserve Bank of India provides some clues on the growth trajectory needed to hit the target.<\/p>\n<h2><strong>What are the prospects of India achieving the status of high income country?<\/strong><\/h2>\n<p>India has a <strong>per capita income of $2,388 in 2022<\/strong>. It is currently classified by the World Bank as a l<strong>ower middle income country. <\/strong><\/p>\n<p>As per IMF, the country\u2019s per capita income is expected to <strong>rise to $3,720 by 2028<\/strong>. So, it is unlikely to achieve <strong>upper middle income status<\/strong> by the end of this decade.<\/p>\n<p><strong>Recent Reserve Bank of India study<\/strong>&#8211; Presently, the World Bank classifies countries with <strong>per capita incomes surpassing $13,025<\/strong> as <strong>high income countries<\/strong>.<\/p>\n<p>If i<strong>nflationary effects<\/strong> are taken into account over the next few decades, a country&#8217;s per capita income would need to exceed <strong>$21,664 by 2047 <\/strong>to maintain <strong>high-income classification. <\/strong><\/p>\n<p>To reach this objective, the <strong>nominal per capita GDP<\/strong> in USD needs to increase at a yearly rate of 9.1 percent during this timeframe, which translates to 7.6 percent in <strong>real GDP terms.<\/strong><\/p>\n<p>However, achieving these growth rates poses a challenge. The study highlights that even during India&#8217;s most <strong>favourable 25-year period<\/strong> between 1993-94 and 2017-18, such growth rates were not achieved.<\/p>\n<p><strong>Way forward- <\/strong><\/p>\n<p>Countries that have achieved high income status have taken a conscious decision to <strong>industrialise and focus on external trade.<\/strong><\/p>\n<p>This is a challenge for the Indian economy. The <strong>level of merchandise exports <\/strong>has not reached the levels envisaged.<\/p>\n<p><strong>Manufacturing\u2019s share<\/strong> should increase to 25% of value added. A<strong> business as usual approach <\/strong>is not sufficient.<\/p>\n<p>The RBI study advocates for the urgent need to i<strong>ncrease investments in the economy<\/strong>, <strong>reduce logistics costs, focus on skilling the labour force, investing more in health and education, and scaling up R&amp;D<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cExpress View: India\u2019s road to 2047\u201d published in \u201cThe Indian Express\u201d on 26th July 2023. Syllabus: GS3- Indian economy and growth Relevance: Development model for high growth News- \u00a0In his Independence Day speech last year, Prime Minister Narendra Modi laid out his vision for India to achieve&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/express-view-indias-road-to-2047\/\">Continue reading <span class=\"screen-reader-text\">Express View: India\u2019s road to 2047<\/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":[216,8184],"class_list":["post-253557","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253557","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=253557"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253557\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=253557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=253557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=253557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}