India Forever A Developing Economy?

The Crux study highlights that resources alone will not do it. No economy, however efficient, can solve the problems of a billion people in a generation

-  Vikas Singh

INDIA HAS UNDERPERFORMED to its potential in the first seventy years of Independence.

We have emerged as the third largest economy in purchasing power parity terms adding a trillion USD, that has pulled 150 million Indians out of the poverty trap, enabling dignified living for a large section of the deprived. Growth has catalysed substantial and sustainable social mobility for the middle class; stimulated holistic progress for most others i.e., the emerging middle class.

Economic Growth Key to Securing the Future of Our Demography

In 10 years, we will have about a billion Indians in the emerging middle and the middle-class bracket. They have high expectations, higher aspirations, and will demand better outcomes. A Crux study titled India Forever a Developing Economy across 12 states in eight key industries contributing to 70 per cent to the economy has several lessons. The 2,000 business owners, 80 academicians, economists, specialists, and thinkers identified the key drivers for India to emerge as a developed economy.

The study articulates that India needs to cross the $10 trillion GDP and $7,000 per capita number to reach the developed' inflection point. It also highlights that while 'business as usual' tugs along the growth engine, it is not enough to propel India into the league of developed nations. We need to create 10 million jobs over the next 10 years, to achieve which a nine per cent growth rate is necessary. The study cautions that even this growth (mostly jobless, largely exclusive) may not be enough to radically improve our Human Development Index. The Crux study calls for a holistic, collaborative, and concerted effort from businesses, entrepreneurs, investors, and policymakers.