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Journalism of Courage
A 7-7.5 per cent real economic growth can make India an upper-middle income country by 2047, but the growth rate needs to accelerate to 8-8.5 per cent to make the country a higher income nation, Bibek Debroy, Chairman, Economic Advisory Council to the Prime Minister (EAC-PM), said on Tuesday.
“Even if you have relatively conservative real rates of growth of 7-7.5 per cent, we will get to a per capita income of about $10,000 by 2047,” he said, at the release of ‘The Competitiveness Roadmap for India@100’.
“The question to ask is what does one need to do to get from the $10,000 per capita income to $12,000, which will make India a higher income country. What does one need to do to get from the rate of growth of 7-7.5 per cent to something like 8-8.5 cent? There are different ways to slice this, some of which have been attempted in this report.”
Following the growth of recent years, India is now a lower-middle income country with average prosperity levels at $2,000 ($7,150 at purchasing power parity). The report, jointly published by the EAC-PM and the Institute for Competitiveness, suggests essential areas of action, including improving labour productivity and enhancing labour mobilisation, boosting the creation of competitive job opportunities, and improving policy implementation through greater coordination.
(With FE)
