India must Grow 7.8% Annually for 22 Years to Reach High Income by 2047
ECONOMY & POLICY

India must Grow 7.8% Annually for 22 Years to Reach High Income by 2047

India must sustain an average growth rate of 7.8 per cent over the next 22 years to achieve high-income status by 2047, according to a World Bank report. Under a "business as usual" scenario, the country is expected to experience significant economic gains but may fall short of this goal.

The report, titled *Becoming a High-Income Economy in a Generation*, emphasises that achieving this target requires accelerated reforms. Over the past three financial years, India’s growth rate has averaged 7.2 per cent. To maintain and further increase this pace, the World Bank’s Country Economic Memorandum outlines four key policy actions.

One of the critical areas identified is raising the investment-to-GDP ratio to 40 per cent by 2035, driven equally by ICT and physical capital. This objective can be met through strengthened financial sector regulations, improved credit access for MSMEs, and streamlined FDI policies.

Another crucial factor is increasing women's workforce participation to 55 per cent by 2050. This can be facilitated by encouraging private sector investments in labour-intensive industries such as agro-processing, manufacturing, hospitality, transportation, and the care economy. Additionally, expanding the skilled workforce, improving financial access, and fostering innovation are essential for economic transformation.

The report highlights that optimizing the allocation of land, labour, and capital towards more productive sectors like manufacturing and services can enhance firm and labour productivity, enabling states to achieve faster and more balanced growth.

Under a "business as usual" scenario, growth is projected to average 6.6 per cent annually, with investment reaching 37 per cent of GDP by 2035 and female workforce participation rising to 45 per cent by 2045. However, if reform efforts slow further, growth could drop below 6 per cent, significantly reducing the likelihood of attaining high-income status by 2047.

News source: Business Standard

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

India must sustain an average growth rate of 7.8 per cent over the next 22 years to achieve high-income status by 2047, according to a World Bank report. Under a business as usual scenario, the country is expected to experience significant economic gains but may fall short of this goal. The report, titled *Becoming a High-Income Economy in a Generation*, emphasises that achieving this target requires accelerated reforms. Over the past three financial years, India’s growth rate has averaged 7.2 per cent. To maintain and further increase this pace, the World Bank’s Country Economic Memorandum outlines four key policy actions. One of the critical areas identified is raising the investment-to-GDP ratio to 40 per cent by 2035, driven equally by ICT and physical capital. This objective can be met through strengthened financial sector regulations, improved credit access for MSMEs, and streamlined FDI policies. Another crucial factor is increasing women's workforce participation to 55 per cent by 2050. This can be facilitated by encouraging private sector investments in labour-intensive industries such as agro-processing, manufacturing, hospitality, transportation, and the care economy. Additionally, expanding the skilled workforce, improving financial access, and fostering innovation are essential for economic transformation. The report highlights that optimizing the allocation of land, labour, and capital towards more productive sectors like manufacturing and services can enhance firm and labour productivity, enabling states to achieve faster and more balanced growth. Under a business as usual scenario, growth is projected to average 6.6 per cent annually, with investment reaching 37 per cent of GDP by 2035 and female workforce participation rising to 45 per cent by 2045. However, if reform efforts slow further, growth could drop below 6 per cent, significantly reducing the likelihood of attaining high-income status by 2047. News source: Business Standard

Next Story
Resources

IGBC Launches 32nd Chapter in Ranchi to Drive Green Building Growth

The CII Indian Green Building Council (IGBC) has launched its 32nd Chapter in Ranchi to accelerate Jharkhand’s transition towards sustainable and resilient urban infrastructure. The launch event, held on September 6 at Radisson Blu Hotel, brought together government officials, industry leaders, and sustainability experts. Sunil Kumar, IAS, Principal Secretary, Urban Development & Housing Department, Government of Jharkhand, said, “The launch of the IGBC Ranchi Chapter marks a significant step in Jharkhand’s urban development journey. The state is committed to creating a policy e..

Next Story
Real Estate

Mindspace REIT Marks Five Years With 14.8 Per Cent Annualised Returns

Mindspace Business Parks REIT, owner and developer of a Grade-A office portfolio, has completed five years since its listing on the Indian bourses in August 2020. Despite debuting during the global pandemic, the REIT has delivered 14.8 per cent annualised total returns, expanded its portfolio, and reinforced occupier trust. Key achievements over five years include: Portfolio expansion of 30 per cent to 31.0 msf through acquisitions and new developments. Gross leasing of 25.2 msf, with occupancy sustained at 93.7 per cent. Cumulative distribution of Rs 55.9 billion to unitho..

Next Story
Real Estate

Great Value Realty Secures RERA Nod for Ultra-Luxury Ekanam Project

Great Value Realty, one of North India’s most trusted developers, has received RERA approval for its flagship ultra-luxury residential project, Ekanam (RERA No. UPRERAPRJ15109/2019). The announcement was made during the Great Partners Meet at Noida. Built on the only available land parcel in Sector 107, Noida, Ekanam embodies the company’s philosophy, “Great is the New Norm,” promising excellence in design, quality, and sustainable community living. With seamless connectivity to Noida Expressway, DND Flyway, metro stations, and proximity to the upcoming Jewar Airport, the project ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?