India can become Viksit by 2047 but the World Bank has a warning | Indian Economy and GDP growth | Business News

Indian economy is less open than what it was a decade ago. The World Bank on Friday said that the country needed ‘accelerated reforms’ if it wanted to hit its ‘Viksit Bharat’ dreams by 2047.

“What got you here won’t get you there,” the global body warned. 

India will need to grow 7.8 per cent on average over the next 22 years if it wants to reach high-income status, World Bank lead economist Aurelian Kruse said in New Delhi while unveiling its India Country Economic Memorandum.

India had an average growth rate of 6.3 per cent in the last quarter century (2000-2024) while it went up to an average of 7.2 per cent over the past three years.

However, the growth rate is expected to slow down to 6.4 per cent this financial year as per govt estimates on the back of global churn due to the reconfiguration of trade barriers and other factors.

However, World Bank country director Augusta Tano Kouame said short-term slowing down shouldn’t be worried about too much when one is aiming long term. 

“If one year is not good, no problem. What’s more important is h the reform momentum. And you need to have an ambition, an aim.” 

PM Modi, in a recent Independence Day speech, had set 2047 as India’s target to become a developed nation (Viksit Bharat). 

However, the World Bank estimates the nation needs to course-correct many areas, ranging from boosting productivity, particularly labour participation, which is pretty low for India right now, as well as increasing investment, more and better jobs and promoting economic convergence, WB-speak for more inclusive growth. 

World Bank pointed to examples of countries, which were in a similar situation as India is right now, and then registered high GDP growth consistently over a period of 20-plus years to hit high-income status. Countries like South Korea, Chile, the Czech Republic, etc., did so “by deepening their integration into the global economy.”

“Most of these countries didn’t have the advantages that India has,” Kruse said.

“India can chart its own path by stepping up the pace of reforms and building on its past achievements,” Kouame added.

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