India must hasten reforms to speed up growth: World Bank
(Source – The Hindu, International Edition – Page No. – 11)
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Topic: GS3 – Indian Economy |
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Context |
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India’s Path to Becoming a High-Income Country by 2047:
Growth Target and Challenges
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India needs to grow at an average rate of 7.8% over the next 22 years to achieve high-income status by 2047.
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The World Bank states that while this target is possible, achieving it requires major economic reforms and their effective implementation.
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India’s past growth rate of 6.3% from 2000 to 2024 provides a strong foundation for future progress.
Global Integration and Lessons from Other Nations
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Countries like Chile, Korea, and Poland successfully transitioned to high-income economies by deepening their integration into the global economy.
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India can follow a similar path by accelerating reforms and building on past achievements.
Key Requirements for Economic Growth
To reach high-income status, India must:
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Ensure faster and inclusive growth across all States.
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Increase total investment from 33.5% of GDP to 40% by 2035.
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Raise labor force participation from 56.4% to above 65%.
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Boost female workforce participation from 35.6% to 50% by 2047.
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Accelerate productivity growth to sustain long-term development.
Four Key Areas for Policy Action
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Increasing investments in infrastructure and industries.
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Creating better job opportunities to support workforce expansion.
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Encouraging economic transformation through trade, technology, and industrial growth.
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Enabling States to grow together for balanced national development.
India’s progress in these areas will determine its ability to achieve the high-income status by 2047.
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Practice Question: What are the key reforms and policy measures India needs to implement to achieve high-income status by 2047. (150 Words /10 marks) |
