Former RBI Governor Raghuram Rajan speaks during Tata Steel Kolkata Literary Meet 2024 at Victoria Memorial in Kolkata, Friday, Jan. 26, 2024.
Credit: PTI Photo
Kolkata: Renowned economist and former RBI governor Raghuram Rajan on Friday said India needs to focus more on education and healthcare to become a developed economy by 2047.
He highlighted the fact that India has maintained an average growth rate of six per cent over the past 25 years, which is no easy feat for any country.
Rajan emphasised the need for governance reforms, as well as a focus on education and healthcare, to build a strong foundation.
Rajan made these remarks at Kolkata Literary Meet while launching the book Breaking the Mould: Reimagining India's Economic Future, which he co-authored with economist Rohit Lamba.
He noted that if India wanted to become a developed country by 2047, it needed to achieve an annual growth rate of more than seven per cent.
"At a growth rate of seven per cent, India’s per capita will grow from the current $2,400 to $10,000 in 2047, which will put the country in the low middle-income bracket," he said.
He stressed the importance of determining the future direction for India's growth, especially considering that the demographic dividend the country currently enjoys will diminish after 2050.
Rajan said to sustain growth, India must prioritise education, healthcare, and governance reforms.
He also emphasised the need for balanced growth across all sections of society, as consumption growth is currently only strong among the upper income levels.
Rajan and Lamba both emphasised the importance of India producing high-value products and conducting research to support entrepreneurs in capturing the high-end of the value creation trajectory.
Rajan also called for decentralisation of education and advocated for 'bottom-up growth.'