Doubts swirl as India aims to be a developed economy by 2047: ‘there is a big gap’

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.”

“This protection comes at a cost to the economy’s overall performance,” he said. “While India has been doing well, it should have done better given how low its GDP per capita is.”

To ascend to developed-nation status, India’s turbocharged growth needs to lift all sectors of society, including the poorest and those living in remote areas, according to economists.

“When we talk of becoming a developed economy, the target has to be clear. A developed nation’s per capita income per year is about US$10,000-US$11,000. Right now, we are a little over US$2,500,” said N R Bhanumurthy, vice-chancellor of Dr B.R. Ambedkar School of Economics University in Bengaluru.

“There is a big gap. What is important is the extent of growth that is inclusive and distributive.”

But New Delhi needs to prioritise reforms of land and labour laws, as well as capital availability, to achieve inclusive growth, Bhanumurthy said.

While the country’s elite science and engineering colleges continue to churn out graduates who service the global technology sector, many young adults – especially in remote and rural areas – struggle to find jobs because of poor quality education.

Nearly a quarter of India’s young people, or 23.22 per cent of those aged between 15 and 24, were unemployed in 2022, estimates the World Bank.

Implementation of India’s