India's economic growth capacity seems to have settled around 6-6.5%, a far cry from over the 8% annual expansion required for it to meet the $35 trillion economy target by 2047, the 100th year of Independence. To become a "developed nation" with per capita income (PCI) above $13,000 by 2047, the PCI must grow at a daunting rate of over 11% a year. To be sure, between the second quarters of FY20 and FY25, the gross domestic product (GDP) grew by an annual average of just 4.87%, and between the first quarters of those years, at an even lower rate of 4.59%. The 8.2% GDP growth reported in FY24 was more a statistical bump caused by the pandemic abyss than being reflective of an economic resurgence. Nothing less than a policy overhaul will suffice for the economy to regain its lost growth capacity and avoid a middle-income trap that looks increasingly real.
Bu hikaye Financial Express Kolkata dergisinin December 12, 2024 sayısından alınmıştır.
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Bu hikaye Financial Express Kolkata dergisinin December 12, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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