India Needs to Grow by 7.8% to Become High-Income Country by 2047, Says World Bank

In order to become a high-income country by 2047, India will need to grow at 7.8%, a World Bank report said on February 28.

The World Bank said in its India Country Memorandum titled ‘Becoming a High-Income Economy in a generation’ that the country will be needing reforms in the financial sector as well as in the land and labour market.

The report took example of India’s fast pace of growth averaging 6.3 per cent between 2000 and 2024. The report highlighted India’s past achievements that can lay the foundation stone for its future ambitions.

The World Bank said, “However, reaching the ambitious target of becoming a high-income economy by 2047 will not be possible in a business-as-usual scenario... for India to become a high-income economy by 2047, its GNI (gross national income) per capita would have to increase by nearly 8 times over the current levels; growth would have to accelerate further and to remain high over the next two decades, a feat that few countries have achieved. To meet this target, given the less conducive external environment, India would need to not only maintain ongoing initiatives but in fact expand and intensify reforms.”

World Bank India country director Auguste Tano Kouame reiterated about countries including Chile, Korea and Poland on how they have successfully transitioned from middle to high-income countries by deepening their integration into the global economy.

Since 2000, India’s economy has grown four times and the GDP per capita has almost tripled. The country’s share in the global economy has doubled from 1.6% in 2000 to 3.4% in 2023.

The report added, “This remarkable development story also includes a steep decline in extreme poverty, and massive expansion of service delivery and essential infrastructure. Building on these achievements, India has set the ambitious goal of becoming a high-income country by 2047.”

The authors of the report Emilia Skrok and Rangeet Ghosh said, “India can take advantage of its demographic dividend by investing in human capital, creating enabling conditions for more and better jobs and raising female labour force participation rates from 35.6 per cent to 50 per cent by 2047.”

Notably, the report highlights economic and social developments in India that have taken place in India over a span of 20 years, while giving insights on the current challenges faced by the economy and recommending necessary reforms to become a high-income economy by 2047.