India remains the fastest growing economy in the world. The government led by Prime Minister Narendra Modi has set the target of making the country a developed nation and has set a deadline of 2047 for this. Meanwhile, in the recent World Bank report, it has been mentioned about the challenges coming in the way of achieving this goal and by when can the country achieve it.
It will take India 75 years!
In a report titled World Development Report 2024: The Middle Income Trap of the World Bank, it has been said that more than 100 countries of the world, including India and China, still have a long time to get the status of high income country. It may take time. According to the report, it may take 75 years for India to reach just one-fourth of America’s per capita income. At present, India’s per capita income is around $2200, whereas in America it is around $37,000.
China can achieve this position in 10 years
While on one hand it may take 75 years for India to reach one-fourth of America’s per capita income, on the other hand, according to the World Bank, it may take seven decades for Indonesia to achieve this target. Meanwhile, if we talk about dragon, then China may be successful in touching this figure much before India and Indonesia. The World Bank says that China can achieve this target only in 10 years.
2 out of every 3 people in the world are in the trap of poverty
In this latest report of the World Bank, at the end of the year 2023, 108 countries of the world have been classified as middle income group. Their per capita annual GDP ranged between 1,136 US dollars to 13,845 US dollars. 6 billion people live in these countries, which is 75 percent of the global population. According to the World Bank, two out of every three people in the world are living in extreme poverty.
What are the challenges before India?
The World Bank has found in its report, based on the experience of the past 50 years, that as countries become richer, they generally fall into the ‘trap’ of about 10 percent of US per capita GDP annually. This 10 percent amount currently equates to approximately $8,000. Describing India’s challenges, it said that apart from rapidly aging population, increasing debt, geopolitical and trade tensions, the difficulty in growing economically without harming the environment is the biggest hurdle in this path. There is an obstacle.
Tell me this solution to get out of the trap
In its report, the World Bank has also told about what measures are necessary to get out of this trap. It says that many middle income group countries are still using the strategies of the last century and are mainly dependent on policies focusing on increasing investment. Which is exactly like driving a car in first gear and trying to make it go fast. World Bank has said that these countries should focus on Three-I (3i) to get out of the ‘middle income trap’. These three eyes are Investment, Innovation and Infusion in new technology.