India needs to grow at 7-8% to be developed nation in 2047: Rangarajan

Developed nation by 2047: Former Reserve Bank Governor C. Rangarajan underscored India's need for a robust annual growth rate of seven to eight per cent to propel the country towards developed nation status, targeting a per capita income of $13,000 by 2047. 

Rangarajan dismissed the notion that innovation alone could address India's economic challenges, advocating for a multi-faceted approach that includes faster economic growth and the implementation of social safety nets, such as subsidies in cash or kind.

Highlighting the stark contrast between India's current per capita income of $2,700 and the desired $13,000 benchmark, Rangarajan emphasized the importance of sustained growth and factors like inflation and exchange rates in achieving this ambitious goal. He suggested that maintaining a lower exchange rate or experiencing price increases could bolster nominal income, thereby aiding India's journey towards the coveted status of a developed nation.

Rangarajan said this while addressing the ICFAI 13th Foundation Day Lecture, where Rangarajan, in his capacity as the Chancellor of the University, presided over the virtual event. The lecture, delivered by former Director General of the Council of Scientific & Industrial Research (CSIR) Raghunath Anant Mashelkar, highlighted the pivotal role of technology in economic growth. Rangarajan echoed this sentiment, acknowledging economists' attribution of a substantial portion of developed countries' growth to technological advancements.

Beyond technological progress, Rangarajan emphasized the imperative of addressing economic disparities by creating livelihood opportunities for those at the bottom of the economic hierarchy. He urged technology to play a pivotal role in developing innovations that offer affordable and accessible facilities to underserved populations, contributing to inclusive economic growth.

Mashelkar echoed this sentiment, asserting that inclusive innovation, by providing affordable access to quality goods and services, can be a transformative force in dismantling inequality and fostering sustainable livelihood opportunities for marginalized communities. In essence, the discourse points to the intricate blend of sustained growth, strategic economic measures, and inclusive innovation as key drivers for India's ambitious trajectory towards economic development.