India needs 7.8 % growth to become developed nation, says World Bank
PTC News Desk: The World Bank on Friday said India will need to grow by 7.8 per cent on average over the next 22 years to achieve the country's aspirations of becoming a developed country by 2047.
A new World Bank report released on Friday finds this target of India possible to achieve. Recognizing India's fast-paced growth averaging 6.3 per cent between 2000 and 2024, the report notes that India's past achievements provide the foundation for its future ambitions.
Getting there however would require reforms and their implementation to be as ambitious as the target itself, the World Bank said in a statement, soon after unveiling the report.
"Lessons from countries like Chile, Korea and Poland show how they have successfully made the transition from middle- to high-income countries by deepening their integration into the global economy," said Auguste Tano Kouame, World Bank Country Director.
The report evaluates three scenarios for India's growth trajectory over the next 22 years.
The scenario which enables India to reach high-income status in a generation, requires: achieving faster and inclusive growth across states; increasing total investment from current 33.5 per cent of GDP to 40 per cent (both in real terms) by 2035; increasing overall labour force participation from 56.4 per cent to above 65 per cent; and accelerating overall productivity growth.
In 2025-26, the Indian economy is projected to grow between 6.3 per cent and 6.8 per cent, as noted in the Economic Survey presented on January 31.
The survey document highlights that the country's economic fundamentals remain strong, supported by a stable external account, fiscal consolidation, and private consumption.
India's GDP grew by an impressive 8.2 per cent during the financial year 2023-24 and continued to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. The government expects 6.4 per cent growth for the current fiscal.
- ANI
