Achieving Viksit Bharat by 2047: Raghuram Rajan Emphasizes the Need for 8-9% Growth in India

Former RBI Governor Raghuram Rajan recently shared his thoughts on India’s economic growth. In a chat with Rajdeep Sardesai from India Today TV, he stressed that to become a "Viksit Desh" (developed nation) by 2047, India needs to boost its growth rate to around 8-9%.

Despite strong GDP performance—7.4% growth in the last quarter and 6.5% for the entire year—Rajan believes we shouldn’t relax. "This growth is commendable, especially given political uncertainties," he said, referencing postponed government spending during election periods. He warns, however, that if India wants to maintain this momentum, decisive actions are necessary to attract investment and encourage consumption. Businesses need confidence to invest in the future, he added.

Rajan noted that rising global uncertainties, particularly regarding tariffs and political situations like Donald Trump’s potential comeback, could slow growth. "With international unpredictability, businesses may hesitate to invest," he explained. Still, there are some bright spots on the horizon, like a favorable monsoon season, which may boost agriculture and stimulate rural demand—advancing economic equality.

When discussing the IMF’s projections that India’s nominal GDP might soon surpass Japan’s, Rajan welcomed this news but cautioned against getting too optimistic. "While this is a significant milestone, it doesn’t necessarily reflect the wealth of our citizens," he said. India remains poorer than these developed nations, and what truly matters is how much individuals earn.

To move forward, Rajan emphasized improving incomes and creating opportunities for everyone. "It’s crucial to focus on the next 5-15 years," he noted. Manufacturing might face challenges, so India must invest in skill development, job creation in services, and new export avenues.

Rajan believes this is India’s moment, but we must act now with consistent policies to ensure that growth benefits everyone.

In the grand scheme, this mirrors a global trend where many countries aim to balance rapid economic development with citizen welfare. As Rajan put it, “The aim is to elevate living standards across the board.”

For more insights into India’s economic landscape, you can refer to this detailed IMF report for a deeper understanding of past and projected growth trends.

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