Indian Economy Needs To Grow By 8% For 30 Yrs For India To Become A Middle-Income Country
According to a report released by the World Bank, India needs to raise its economy by 8 percent or more for 30 consecutive years to enlist itself in the middle-income countries. An enormous shift and reform are expected from the land, labour and financial sectors to join the list of countries and for higher growth.
The steady pace of growth would ensure a rise in income of at least 50 percent of India’s 1.3 billion population, maintaining the consumption expenditure of each day as $10 based on the purchasing power parity of the middle-class group. As per Times of India report, Per capita income growth may fall to 8.3% to Rs 1,11,782 this fiscal year 2017-18.
“Asia’s third-largest economy, which grew at a rapid pace of 8.8 percent a year from 2004 to 2008, is expected to grow 6.7 percent this financial year”, said the country director of the World Bank, Junaid Ahmed.
According to him, $20 billion to $25 billion will be lent to India for economic growth in the next five year primarily for investing in infrastructure, human resources and natural resources management.
He additionally mentioned that India now needed to undertake reforms for efficient use of scarce land, water and financial resources to achieve higher growth. India’s long-term growth has been steady, stable, diversified and resilient, he added.
With the vast population of 1.3 billion people, the economy of India needs a constant growth to create job opportunities for its young citizens.
“India needs to push land, labour and financial sector reforms and improves the competitiveness of exports to achieve higher growth”, said Poonam Gupta, lead author of the World Bank.
She enhanced on the revival of private investment and growth of India, amidst the slackening in bank credits due to a surge in bank loans.
The World Bank suggested more alliance of state banks and more space for private banks.
“India needs to push land, labour and financial sector reforms and improves the competitiveness of exports to achieve higher growth”, Poonam Gupta, lead author of the World Bank report said.