Former Reserve Bank of India Governor, Duvvuri Subbarao, has injected a note of caution amidst India's projected rise as the world's third-largest economy by 2029.
Despite the anticipated economic milestone, Subbarao emphasized that India's per capita income of $2,600 places it in the 139th position globally, highlighting the stark reality of poverty persisting within the nation.
Speaking at a book launch event, Subbarao drew attention to India's position as the poorest among BRICS and G-20 nations, despite its growing economic stature.
He noted that while India's large population contributes to its economic ranking, the country still grapples with widespread poverty.
Subbarao referenced Prime Minister Narendra Modi's aspiration for India to become the third-largest economy, cautioning against premature celebration.
He pointed that achieving a high GDP does not equate to development, citing examples like Saudi Arabia.
Despite India's current status as the fifth-largest economy, with a GDP of $4 trillion, Subbarao stressed the need for inclusive growth to address income disparities.
He outlined a clear agenda focusing on accelerating growth rates while ensuring equitable distribution of benefits.
Subbarao reiterated the Prime Minister's vision of India becoming a developed nation by 2047.
He identified four critical components namely rule of law, a strong state, accountability, and independent institutions as essential ingredients for achieving this goal.
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