The Reserve Bank of India (RBI) in its July bulletin has said that India could become a developed country by 2047 with an average annual real GDP growth of 7.6% over the next 25 years. An article titled ‘India @ 100’ stated the task of becoming a developed nation, however, may not be easy, given the current level of capital stocks, infrastructure, and skill sets of the people.
“India’s real GDP needs to grow at 7.6% 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.
“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% to 35% by 2047-48. Agriculture and services activity would have to grow at 4.9% and 13% per annum, respectively, in the coming 25 years with their sectoral shares in GDP at 5% and 60% respectively, in 2047-48,” the article said.
It further 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. The current per capita GDP of USD 2,500 needs to rise to USD 22,000.
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.
Addressing the nation on August 15, 2022 — the 75th year of India’s independence — Prime Minister Modi laid down a vision for the next 25 years to become a developed nation by 2047.
