India needs average annual growth of 7.6 pc to become developed nation by 2047: RBI article

economictimes.indiatimes.com:

Reserve Bank in its July bulletin. The task, however, may not be easy, given the current level of capital stocks, infrastructure and skill sets of the people, said the article titled 'India @ 100'. Addressing the nation on August 15, 2022 — the 75th year of India's independence — Prime Minister Narendra Modi laid down a vision for the next 25 years to become a developed nation by 2047.

«India's real GDP needs to grow at 7.6 per cent annually over the next 25 years to achieve the per capita income level to become a developed economy,» the article, authored by Harendra Behera, Dhanya V, Kunal Priyadarshi and Sapna Goel, said. The authors are from the RBI's Department of Economic and Policy Research. The central bank said the views expressed in the article are those of the authors and do not represent its views.

During 2022-23, India recorded a growth of 7.2 per cent. The RBI's projection for GDP growth for current fiscal year is 6.5 per cent. The article, the authors said, provides an indicative road map for enabling India to become a developed country by 2047-48.

«India must rebalance its economic structure by strengthening its industrial sector so that its share in GDP rises from the current level of 25.6 per cent to 35 per cent by 2047-48. »Agriculture and services activity would have to grow at 4.9 per cent and 13 per cent per annum, respectively, in the coming 25 years with their sectoral shares in GDP at 5 per cent and 60 per cent, respectively, in 2047-48," the article said. It also said that to become a developed country by 2047, India's per capita GDP needs to rise by 8.8 times from the current level.