India’s ambition to become the third-largest economy by 2026-27 necessitates a cohesive grand strategy including prioritizing the resolution of the middle-income trap as a critical challenge to our long-term aspirations, NITI Aayog CEO BVR Subrahmanyam said.
“The middle-income trap is the biggest threat to India’s growth,” Subrahmanyam said, adding that the government and its think tank NITI Aayog need to work together to formulate an economic growth strategy to avoid such a trap.
“Do nothing, no strategy, and you will fall into the middle-income trap,” Subrahmanyam said while addressing the 11th Annual Forum of Public Affairs Forum of India on Wednesday.
The middle-income trap occurs when countries fail to transition from middle to high-income status and get stuck due to stagnant growth, lack of innovation, and outdated economic models. As per the recent World Bank report, India along with 107 other countries run the risk of falling into the middle-income trap.
According to Subrahmanyam, India stands at a pivotal moment in its journey toward becoming a global powerhouse, with projections indicating an economy of $38 trillion and a youthful population that strengthens its global position.
“Our economy should easily double by 2030. Urban development and infrastructure are crucial, with cities designed as economic hubs to drive growth,” he said.
“The private sector must lead in innovation and investment, supported by an enabling environment that attracts both portfolio and direct investments,” he added.
According to Subrahmanyam, reforming supply chains is essential for navigating globalization. “By establishing itself as a solutions hub for engineering and promoting Make in India as a hallmark of quality, India can create a strong base for global markets,” he said.
“Ultimately, reforms at the state level and a commitment to cooperative federalism will ensure inclusive growth, positioning India to emerge as a global giant and lead into a prosperous future,” Subrahmanyam added.
“The middle-income trap is the biggest threat to India’s growth,” Subrahmanyam said, adding that the government and its think tank NITI Aayog need to work together to formulate an economic growth strategy to avoid such a trap.
“Do nothing, no strategy, and you will fall into the middle-income trap,” Subrahmanyam said while addressing the 11th Annual Forum of Public Affairs Forum of India on Wednesday.
The middle-income trap occurs when countries fail to transition from middle to high-income status and get stuck due to stagnant growth, lack of innovation, and outdated economic models. As per the recent World Bank report, India along with 107 other countries run the risk of falling into the middle-income trap.
According to Subrahmanyam, India stands at a pivotal moment in its journey toward becoming a global powerhouse, with projections indicating an economy of $38 trillion and a youthful population that strengthens its global position.
“Our economy should easily double by 2030. Urban development and infrastructure are crucial, with cities designed as economic hubs to drive growth,” he said.
“The private sector must lead in innovation and investment, supported by an enabling environment that attracts both portfolio and direct investments,” he added.
According to Subrahmanyam, reforming supply chains is essential for navigating globalization. “By establishing itself as a solutions hub for engineering and promoting Make in India as a hallmark of quality, India can create a strong base for global markets,” he said.
“Ultimately, reforms at the state level and a commitment to cooperative federalism will ensure inclusive growth, positioning India to emerge as a global giant and lead into a prosperous future,” Subrahmanyam added.
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