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Doubts swirl as India aims to be a developed economy by 2047: ‘there is a big gap’
- Narendra Modi’s ruling BJP has vowed in an election pledge to attain developed economy status for India within the next 25 years
- But observers caution that uneven development, stalled reforms and a perpetually ‘tough’ business environment are still hurdles to overcome
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Narendra Modi has an assortment of obstacles to surmount, ranging from stalled reforms to high business costs, before he can fulfil his election pledge of propelling India to developed economy status by 2047, economists say.
His ruling Bharatiya Janata Party (BJP) made the promise in a manifesto released on Sunday last week that also vowed to accelerate India’s infrastructure development and transform the country into a global manufacturing powerhouse.
The Indian prime minister’s party aims to capitalise on reforms rolled out amid his decade in power that have successfully transformed India into one of the world’s fastest-expanding major economies, at a time of slower growth in China.
Despite a challenging global environment, India’s gross domestic product grew by as much as 7.8 per cent in the year to March, according to International Monetary Fund estimates. China, meanwhile, reported GDP growth of 5.2 per cent in 2023.
But economists say a host of legacy issues that could hinder investments still need to be tackled for India to achieve developed nation status.
“Modi has managed to capitalise on the economic growth gains of India as a personal achievement,” said Antonio Fatas, an economics professor at INSEAD business school. “It is fair to say that he and his government are seen as partially responsible for the growth rate of recent years.”
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