- Source – Indian express
- Link – https://indianexpress.com/article/opinion/columns/india-developed-2047-9364529
- Syllabus – GS Paper 03
- Topic – Economy growth
This article prospects the challenges faced by India to become a developed country by 2047 and suggests few actions to achieve the desired goal.
What does it mean to become a developed country?
- International financial organizations classify countries with a per capita income of $13,845 and above as developed.
- Currently, India’s per capita income is $2,500 (IMF, April 2024), highlighting the significant gap to be bridged.
- To achieve the developed country threshold, India needs an average annual real growth rate of 6-7%, based on future exchange rate and domestic inflation assumptions
Since Independence, India has achieved significant milestones:
- GDP: Increased from Rs 2.79 lakh crore in 1950-51 to about Rs 280 lakh crore currently.
- Forex Reserves: Grew from Rs 911 crore in 1950-51 to over $650 billion USD, making India the country with the sixth-largest forex reserves.
- Food Production: Expanded from 50.8 million tonnes in 1950-51 to over 329 million tonnes.
- Literacy Rate: Improved from 18.3% in 1951 to 78%, with female literacy rising from 8.9% to over 70%.
The Required Growth Rate: 7.7% for the next 23-24 Years
- India has showcased impressive growth in recent years, earning global applause.
- However, the global geopolitical situation poses significant challenges.
- The Reserve Bank of India expects a growth rate of 7% in 2024, but faster growth is necessary to become a developed nation by 2047.
- According to D. Subba Rao, India, a relatively low-income economy, needs a higher growth rate to achieve this goal.
- A stable geopolitical scenario is crucial for faster growth.
- With 24 years to 2047, maintaining a growth rate of 7.6% to 7.7% is essential.
- However, India has never sustained a growth rate over 7.5% for three consecutive years, making this a daunting task.
How can India Maintain the Required Growth Rate?
- Even with a growth rate of 7.6% to 7.7%, if benefits are not widely shared, it will increase inequalities.
- The World Inequality Report identifies India as one of the most unequal societies.
- This inequality is morally wrong and politically incorrect.
- Beyond maintaining growth, India must focus on uplifting the bottom segment.
- This would boost consumption, demand, and production, generating more jobs and fueling further growth.
- Addressing the unemployment rate, currently around 8% to 10%, is also crucial.
What needs to be done for Required Economic Growth?
- Achieving consistent GDP growth requires strong manufacturing and substantial investment in infrastructure.
- Investing in education and training is crucial to create a skilled workforce, as currently, only 2% to 3% of the workforce is skilled.
- India faces both unemployment and underemployment.
- As India rapidly becomes the startup capital, fostering entrepreneurship and innovation is beneficial.
- Encouraging startups for job creation and attracting foreign investment are key.
- The government must ensure economic prosperity reaches all segments of society, addressing poverty and inequality through fair resource allocation. Inclusive growth should be a primary focus.
What needs to be done for Required Social Development?
- India, one of the youngest countries globally, possesses significant human resources awaiting utilization.
- Initiatives must prioritize improving healthcare, sanitation, and nutrition to enhance life expectancy and quality of life.
- Access to quality education for all individuals is essential to boost human capital development.
- Bridging the gender gap in education, employment, and political participation can foster inclusive economic growth.
- Empowering women is crucial for overall societal progress, alongside measures to combat discrimination and promote social harmony across ethnic, religious, and caste lines, ensuring national unity.
- To achieve the required growth rate for becoming a developed nation by 2047,
- India must prioritize environmental protection and resource management.
- This includes substantial investment in renewable energy, sustainable agriculture, and climate-resilient infrastructure.
- Balancing economic growth with environmental stability is imperative amid current geopolitical challenges and internal issues.
- Achieving and sustaining a growth rate of 7.6% to 7.7% will demand concerted efforts from both the government and citizens.
