Transforming India in one generation

India is classified as a lower-middle income country by the World Bank. Countries with a -per capita income of $1,045 or less are classified as low-income countries. Lower-middle income countries have a per capita income of $1,046 to $4,095; upper-middle-income countries have $4,096 to $12,695, and high-income countries have a still higher per capita income. India's per capita income is around $2,100.

- AMITABH KANT

Prime Minister Modi said in his Independence Day speech that India must become a developed nation by the time we complete 100 years of independence. This means we should transform ourselves in one generation and become a high-income country by 2047. This can be met only through sustained high growth.

A growth rate of 6 percent during the next 25 years will see the economy reach a size of $16.4 trillion by 2047. At 8 percent it will take the economy to $20.6 trillion, and at 10 percent, it will be $32.6 trillion. This is the compounding power of growth.

A 6 percent real growth rate will translate into a per capita income of $10,000 by 2047. At 8 percent, it would be $14,000. At 10 percent, it would touch $22,000 and radically transform the lives of citizens.