TestCloud
Prep • Practice • Perform
Log In

The World Bank states that India needs to grow at an annual rate of 7.8% to reach high-income status by 2047.

Economy Business | Dated: 06 Mar 2025

In February 2025, the World Bank (WB) released a report titled 'India Country Economic Memorandum: Becoming a High-Income Economy in a Generation.' This report provides a detailed analysis of India's economic development, future prospects, and policy recommendations.

🎯 Key Highlights:

  • - According to the report, India needs to grow at an average rate of 7.8% over the next 22 years to achieve its goal of becoming a High-Income Nation (HIN) by 2047.
  • - The report points out that while this target is achievable (because India has experienced strong growth of 6.3% between 2000 and 2024), it will require significant reforms and their effective implementation.

💡 Other Important Facts:

  • (i) The report suggests 4 major policy areas for India to focus on: increasing investment, creating more and better job opportunities, promoting structural changes in the economy, encouraging trade and technology adoption, and helping states grow faster and more equally.
  • (ii) It recommends raising both private and public investment from 33.5% to 40% of India's GDP by 2035.
  • (iii) The report also emphasizes increasing the labor force participation (currently at 56.4%) by encouraging growth in labor-intensive sectors like agro-processing, hospitality, and transportation, while ensuring a skilled workforce and better access to finance.

📚 Test Your Knowledge:

According to the World Bank, what annual growth rate does India need to achieve to attain high-income status by 2047?

Correct Answer: 7.8%

🚀 Quick Recap:

About the World Bank (WB)

  • President: Ajay Banga
  • Headquarters: Washington, DC, USA