India must average 7.8% annual growth to become a high-income economy by 2047, necessitating substantial reforms in the financial sector, land, and labor markets. The World Bank indicates that past growth of 6.3% needs to accelerate and remain consistent over the next two decades. Recommendations include investment in human capital and creating job-rich sectors to harness India’s demographic dividend.

India must implement reforms to achieve an average annual growth rate of 7.8% and become a high-income economy by 2047, as highlighted in a World Bank report released recently. Key reforms need to occur within the financial sector, as well as land and labor markets, according to the India Country Memorandum titled ‘Becoming a High-Income Economy in a generation’. The report emphasizes that while India has achieved significant growth averaging 6.3% from 2000 to 2024, sustaining this growth and reaching high-income status will require intensified reforms.

For India to reach its ambitious income goals by 2047, its Gross National Income (GNI) per capita must increase nearly eightfold from current levels; such growth over the following decades is rare among nations. The World Bank notes that India has undertaken several structural reforms aimed at developing into a global manufacturing hub, enhancing infrastructure, and leveraging digitization while maintaining macroeconomic stability. Continuing along this path with an accelerated reform agenda could help secure high-income status within the projected timeline.

World Bank India Country Director Auguste Tano Kouame mentions that the experiences of countries like Chile, South Korea, and Poland demonstrate successful transitions from middle to high-income status through deeper global economic integration. Over the years, India’s economy has grown significantly, nearly quadrupling since 2000, while GDP per capita has almost tripled. This growth is evidenced by India’s share in the global economy, which has risen from 1.6% in 2000 to 3.4% in 2023, thus solidifying its position as the world’s fifth-largest economy.

The World Bank’s findings highlight India’s need for substantial reforms to maintain accelerated growth rates essential for achieving high-income economy status by 2047. To achieve this, strategies must integrate investment in human capital, job creation, and enhancing the financial landscape. By leveraging its demographic advantages and implementing targeted policy approaches, India can strive toward its ambitious economic aspirations. Furthermore, collaboration between state and federal levels will be critical in optimizing resources and ensuring that less developed states catch up with more prosperous regions.

Original Source: www.ndtv.com

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