Former Chief Executive of NITI Aayog, Amitabh Kant, recently shed light on why India, despite being one of the top five global economies, is still classified as a ‘developing nation’.
This comes amidst a forecast by global brokerage Jefferies, which predicts India's GDP will reach $5 trillion within the next four years.
Kant explained the criteria for a nation to be considered 'developed', noting that a Gross National Income (GNI) per capita exceeding $11,905 is required.
"Even China, Brazil, and Malaysia are regarded as developing countries," he pointed out in a response on social media platform X (formerly Twitter). As of 2022, India's GNI per capita stood at $6,951, a rise from $6,542 in 2021, based on the Human Development Index.
Jefferies' projection suggests that India’s GDP will surpass Japan and Germany by 2027, making it the world’s third-largest economy.
They also foresee India's stock market reaching nearly $10 trillion by 2030, attracting significant global investor interest.
The brokerage attributes this growth to factors such as a consistent labor supply, stronger institutions, and improved governance.
Kant echoed these optimistic projections, stating, “By 2027, we will overtake Germany and Japan.” He added that analysts predict India will contribute 30 percent of global GDP growth between 2035 and 2040.
He further highlighted India’s impressive economic reforms, which have propelled it from the “fragile five” to being among the world’s top five economies.
“Due to significant structural reforms, India has transitioned from the fragile five to the top five, achieving a growth rate of about 8.4 percent over the last three quarters,” Kant emphasized.
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