“If India grows at 9.6 per cent per annum in the next 10 years, the country will become a developed economy.”
RBI News: Given India’s strong foundation and inherent potential, the country can become the world’s second largest economy by 2031 and the world’s largest economy by 2060. Reserve Bank of India (RBI) Deputy Governor Michael D Patra said this while addressing Indian Administrative Service officers at the Lal Bahadur Shastri National Academy of Administration in Mussoorie.
what did he say
For this, he said, India will have to overcome various challenges related to labor productivity, infrastructure, contribution of manufacturing sector to GDP and greening the economy for sustainable growth. “Given the underlying strengths I have mentioned and our determination to achieve our aspirational goals, it is possible to envision India becoming the world’s second largest economy in the next decade, not by 2048, but by 2031,” he said. Will become the world’s largest economy by 2060.
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The senior Reserve Bank official said it is estimated that if India grows at 9.6 per cent per annum in the next ten years, it will break free from the lower middle income trap and become a developed economy. Patra said that its effect should also be visible in per capita income. However, by 2047, per capita income for developed countries will need to reach US$34,000.
He said that the current exchange rates determined in the market are going through a period of instability. Therefore, GDP measured in national currencies cannot be compared with that of another country. In such a situation, an alternative solution is Purchasing Power Parity (PPP). It relates to the average price of goods and services in each country.
Patra said that if we compare on PPP basis, the situation changes dramatically. On this basis, India is the third largest economy in the world.
The Organization for Economic Co-operation and Development (OECD) estimates that India will overtake the US to become the world’s second largest economy in PPP terms by 2048.
