India can become world's 2nd largest economy by 2031: RBI deputy guv Michael Patra
Reserve Bank deputy governor Michael D Patra. India, however, will have to overcome various challenges with regard to labour productivity, infrastructure, contribution of manufacturing sector in GDP, and greening of the economy for sustainable development, he said in his address to the officials of the Indian Administrative Service at the Lal Bahadur Shastri National Academy of Administration, Mussoorie.
«Given the innate strengths, I described and the resolve to achieve its aspirational goals, it is possible to imagine India striking out into the next decade to become the second largest economy in the world not by 2048, but by 2031 and the largest economy of the world by 2060,» he said.
The senior RBI official further said it has been estimated that if India can grow at the rate of 9.6 per cent per annum over the next ten years, it will break free of the shackles of the lower middle income trap and become a developed economy.
«These gains need to be reflected in per capita income with two milestones — a per capita income level of USD 4516-14,005 to reach middle income country status, and beyond that level to attain the position of a developed country today. By 2047, however, the developed country threshold will have moved up to USD 34,000,» he said.
He said that current exchange rates determined in the market are subject to bouts of volatility. Hence, their application as denominators to GDP measured in national currencies may not be appropriate for cross-country comparisons.
An alternative measure is
