India may remain poor even after becoming 3rd largest economy:
Ex-RBI chief
Even after becoming the third largest economy in the world by 2029
as envisaged by Prime Minister Narendra Modi, India may still be a poor country
and therefore there is no reason for celebration, former Reserve Bank Governor
D Subbarao said here on Monday.
Addressing a gathering at a book launch programme, Subbarao also
said, citing Saudi Arabia, that becoming a rich country does not necessarily
mean becoming a developed nation.
Recalling PM Modi saying that if he returns to office, India will
become the third-largest economy before 2029 -- before the end of his third
term, he said many economists predict that the country would become the third
largest after the US and China, much sooner.
In my view, that is possible (India becoming the third-largest
economy), but it's not a celebration. Why? We are a large economy because we
are 1.40 billion people. And people are a factor of production. So we are a
large economy because we have people. But we are still a poor country, Subbarao
said, adding that India is now the fifth largest economy in the world, with the
figure standing at USD 4 trillion.
With a per capita income of USD 2,600, India is in the 139th
position in the league of Nations in terms of per capita income. And the
poorest among BRICS and G-20 nations, he further pointed out.
So the agenda for moving forward is quite clear. Accelerate the
growth rate and ensure that the benefits are going to be shared, he said.
Subbarao also recalled that the Prime Minister said that India
must become a developed country by 2047.
According to Subbarao, in order to become a developed nation, four
essential ingredients--rule of law, strong state, accountability and
independent institutions--are required.
www.business-standard.com
dt. 16.04.2024