India needs rapid economic reforms and structural changes to become a developed nation by 2047, NITI Aayog vice chairman Ashok Kumar Lahiri said on Friday.
Addressing the SRCC Centenary Conclave here, Lahiri cited examples of Asian countries like China, South Korea, Taiwan and Japan, which increased their per capita income rapidly and became high-income countries.
A high-income economy is defined as a country with a gross national per capita income exceeding a particular threshold.
For the year 2027, for example, the threshold is $14,375 to become a developed country.
"You factor in some inflation, and one estimate puts the target for per capita income at around $18,000 to $20,000 for India to become a high-income country by 2047," he said.
Lahiri pointed out that India's per capita income is $2,813 currently, and to reach $18,000 in 2047, India's per capita income needs to grow six and a half times at an annual nominal rate of about 9.25% per year for the next 21 years.
"So you may ask the question: Is this a pipe dream? Six and a half times increase in 21 years.
"No, it is not. Why do I say that? Because many other countries in Asia (China, Japan, Taiwan and South Korea) have done it. But it needs rapid economic reforms and structural changes," he said.
The NITI Aayog VC emphasised that the three areas that are critical for rapid growth are education, health, and infrastructure.
"You will not find any country where the people are educated and poor. Neither will you find any country where the people are uneducated and rich," he noted.
Similarly, Lahiri said, "you will find it difficult to find countries where the people are healthy and poor, or where the people are rich and sickly".
The eminent economist noted that human capital is essential for economic growth and well-being.
"It is human capital that combines with raw materials, machines, and technology to produce goods and services. The quality of human capital is determined by education and health," he said