India working on a $30 TRILLION ECONOMY target by 2047'

S. MAHENDRA DEV, CHAIRMAN, Economic Advisory Council to the Prime Minister (EAC-PM), opens up on the Viksit Bharat roadmap, and more.

- S. MAHENDRA DEV, CHAIRMAN, Economic Advisory Council to the Prime Minister (EAC-PM), opens up on the Viksit Bharat roadmap, and more. Excerpts BY SUMAN K. JHA

Your PhD was about “inter-re-gional disparities in India”. How have India’s inter-regional disparities changed over the years? How would it look like in 2047, you think?

Regional inequalities in per capita income during 2000-2001 to 2019-20 increased over time. In other words, rich states are growing faster and less developed states have lower growth. But, regional inequalities in human development have declined. This is because in terms of life expectancy and infant mortality, states like Bihar, Jharkhand etc. are catching up with southern states in human development. Regional inequalities are expected to reduce both in per capita income and human development by 2047 as the less developed states will catch up with developed states over time.

What should be the average annual rate of growth if India is to become a developed country, or a high-income economy, by 2047? There are some estimates of projected nominal growth of 11 per cent to 12 per cent and real growth rates of 7 per cent to 8 per cent to achieve this goal. India has potential to achieve these growth rates. It has to increase GDP from the present $4 trillion economy to $30 trillion economy by 2047. The chief ministers of a few states have already announced targets for GSDP. For example, the Telangana state government announced that it would achieve $3 trillion economy by 2047.

The new GST rates will boost consumption, and also, to some extent, cushion against the external uncertainties, it is said. How important are the GST reforms in India’s economic long-term growth, and do they also further call for more economic measures, towards the India@2047 vision?