With 6% growth, India will be lower middle country by 2047

Hyderabad: Former Reserve Bank Governor Raghuram Rajan said India will still remain a lower middle country if the potential growth rate remains at 6 per cent annually without any rise in population by 2047 (Amrit Kaal) and will be reaching the end of the demographic dividend by then.

Speaking at a programme organised by Manthan here on Saturday night, the economist said if the country does not grow faster, it will grow older (demographically) before it gets richer, which means there is the burden of an aging population to deal with also at that point.

Rajan said the GDP growth in India for the past two quarters was in the region of 7.5 per cent and if one looks at the labour force participation, it is very low and when it comes to female participation, “it is the lowest in the G20”.