India as a Developed Country in 2047: Risks and Challenges

The fast-paced recovery after the sharp contraction seen during the pandemic has seen India reaching the pre-pandemic level. The international comparison shows India as the fastest-growing large economy and is expected to become the third-largest economy by 2030. Despite this, with per capita income at about $2,500, it is a low-middle-income country. From this, having seen the fast pace of growth, the Prime Minister has set an aspirational target of achieving the high-income status by the centenary year of independence, 2047, which requires a more than five-fold increase in per capita income at the current exchange rate. Equally important is the challenge of absorbing the addition to the labour force and absorbing those in the informal sectors in productive better-paying jobs. This article presents the nature of the challenge and the macroeconomic and structural reform needed to achieve them. JEL Codes: O2, O23, O53