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
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.
- 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.
Main Point :- (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.
About the World Bank (WB)
President: Ajay Banga
Headquarters: Washington, DC, USA
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