Expressing optimism about India’s growth prospects, NITI Aayog Vice Chairman Ashok Kumar Lahiri has said that India needs rapid economic reforms and structural changes to become a developed nation by 2047. He said a high-income economy is defined as one in which the gross national income (GNI) per capita exceeds a specified threshold. For instance, he noted that the threshold for 2027 is $14,375 for a country to qualify as a high-income economy.
Lahiri said “You factor in some inflation, and one estimate puts the target for per capita income at around $18,000 to $20,000 for India to become a high-income country by 2047.” He pointed out that India’s per capita income currently stands at $2,813. To reach $18,000 by 2047, India’s per capita income would need to increase around six-and-a-half times, growing at an annual nominal rate of around 9.25 per cent over the next 21 years.
He emphasised that education, healthcare and infrastructure are the three critical areas for achieving rapid economic growth. He noted “You will not find any country where the people are educated and poor. Neither will you find any country where the people are uneducated and rich.” Similarly, he said, “You will find it difficult to find countries where the people are healthy and poor, or where the people are rich and sickly.” He stressed that human capital is essential for economic growth and overall well-being.
