Former Reserve Bank Governor D Subbarao, speaking at a book launch event, cautioned against premature celebration of India's projected rise to the third-largest economy by 2029, as outlined by Prime Minister Narendra Modi. However, Subbarao emphasized that as India's vast population contributes to its economic size, the country is likely to remain impoverished despite hitting the milestone.
He highlighted India's position as the fifth-largest economy globally, with a GDP of $4 trillion but noted its low per capita income of $2,600, placing it 139th internationally.
Additionally, he emphasized that India is the least affluent among both BRICS and G-20 nations.
"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.
Subbarao underscored the need to accelerate growth and ensure equitable distribution of benefits. Additionally, he recalled PM Modi's vision for India to become a developed nation by 2047, outlining the essential elements of rule of law, a robust state, accountability, and independent institutions as prerequisites for achieving this goal.
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