Ira Singh
Khabar Khabaron Ki,18 April’24
India is set to join elite club of 3rd largest economy from it’s present status of emerging economy in the world. Amid slowdown in the major economies of the world, India’s growth story including increased domestic consumption and FDI inflow, seems to suggest the glass half filled. The central government however is leaving no stone unturned to achieve this milestone. But there is some element of doubts being expressed by no less than the former RBI Governor D. Subbarao.
Former RBI Governor D. Subbarao has cautioned that despite India’s ascent to become the world’s third- largest economy, poverty may persist if economic growth isn’t inclusive and equitable. Subbarao highlighted that while India’s economic prowess has surged, with GDP figures positioning it as a global economic powerhouse, the benefits of this growth have not necessarily trickled down to the most vulnerable segments of society.
India’s economic trajectory is undoubtedly impressive, marked by soaring GDP figures and significant advancements in various sectors. However, the glaring reality remains that a substantial portion of the population continues to grapple with poverty and deprivation,” Subbarao stated.
Recently, addressing a gathering (at a book launch programme), Subbarao said, citing Saudi Arabia, that becoming a rich country does not necessarily mean becoming a developed nation.Recalling PM Modi saying that if he returns to office, India will become the third-largest economy before 2029-before the end of his third term, he said many economists predict that the country would become the third largest after the US and China much sooner.
”In my view, that is possible (India becoming the third-largest economy), but it’s not a celebration. Why? We are a large economy because we are 1.40 billion people. And people are a factor of production. So we are a large economy because we have people.But we are still a poor country,” Subbarao said, adding that India is now the fifth largest economy in the world, with the figure standing at USD 4 trillion.
With a per capita income of $2,600, India is in the 139th position in the league of Nations in terms of per capita income. And the poorest among BRICS and G-20 nations, he further pointed out.So the agenda for moving forward is quite clear. Accelerate the growth rate and ensure that the benefits are going to be shared, he said.
Subbarao also recalled the Prime Minister’s aspiration for India to attain developed country status within the next two decades(by 2047). He emphasized that accomplishing this ambitious goal requires a focus on four fundamental ingredients: the rule of law, a robust state apparatus, accountability mechanisms, and the presence of independent institutions.