‘Further reforms needed for India to reach developed country status by 2047’

Member of Fourteenth Finance Commission M. Govinda Rao has said that to achieve the status of a developed country by 2047, India has to increase its per capita income (PCI) from the current $2,600 to $14,205.

Member of Fourteenth Finance Commission M. Govinda Rao has said that to achieve the status of a developed country by 2047, India has to increase its per capita income (PCI) from the current $2,600 to $14,205.

Delivering the Dr. D.C. Pavate Foundation Memorial Lecture at Karnatak University in Dharwad on Friday, Prof. Rao said that to achieve this goal, the country should raise the current PCI by 5.3 times and maintain a growth rate of over 9% per year.

“It is encouraging that the country has been maintaining macro-economic stability, an efficient financial sector, and digital infrastructure. Despite the many challenges to achieving the status of a developed country, India can reach this target”, he said.

Prof. Rao emphasised the need for adopting labour-intensive technology, achieving a higher Incremental Capital Output Ratio (ICOR), investing over 42% of GDP, implementing reforms in land and labour laws to achieve the goal. Additionally, lowering the cost of borrowing, maintaining fiscal discipline, and enacting reforms in trade, judiciary, and governance was also required, he said.

Presiding over the function, Vice Chancellor of Karnatak Univeristy K.B. Gudasi concurred with Prof. Rao and emphasised the need for focusing more on education and health. Professor of Economics B.H. Nagoor, coordinator of the foundation Prof. Mallikarjun Patil and others were present.