[ad_1]
Former Reserve Bank of India (RBI) Governor Raghuram Rajan said that India will reach the end of the demographic dividend by 2047 (Amrit Kaal) and even if the growth rate remains at 6%, it will still be classified as a lower middle income country. Will be done. Every year without any population growth.
Speaking at an event in Hyderabad, the former RBI governor said that if the country does not grow rapidly economically, it will grow old demographically before it gets rich. The economist indicated at that time to deal with the burden of increasing population.
Read this also Raghuram Rajan says that Gurgaon and Noida function as first world economies. Top 4 views on India’s economic outlook
“If you do the math, at a rate of 6 percent per year, you will double every 12 years, and so in 24 years, our per capita income will quadruple. Today, the per capita income in India, as you You know, that’s a little less than $2,500 per capita… Multiplying by four, we get $10,000 per capita… So if you do the math, at our current growth rate, you know, strong Because this is the highest in the G20, we don’t get rich but we will remain lower-middle income till 2047,” PTI quoted Raghuram Rajan as saying.
Rajan said some southern states are growing below the fertility rate in terms of population, in other words, the fertility rate has fallen below the fertility rate causing growth to slow down.
Read this also US Visa: 5 major changes in rules in 2023
“In other words, we will begin the aging process at some point around that time, which raises the worrisome question that if we don’t age faster, we will get old before we get rich, which means that We all have all the burdens at that point to also deal with the aging population,” he said.
The former RBI chief said the current pace of growth is not enough to employ all those entering the labor force and is insufficient to make the country rich before it grows old.
RBI raises India’s 2023-24 GDP growth by 50 bps to 7%
Earlier this month, the Reserve Bank raised India’s GDP growth forecast by 50 basis points to 7% for fiscal year 2023-24, while maintaining status quo on the key policy rate. In its October meeting, the RBI projected growth at 6.5% in 2023-24.
The upward revision comes after India reported better-than-expected growth in the July-September quarter.
The Indian economy grew 7.6% during the July-September quarter of the current financial year 2023-24 and remained the fastest growing major economy. India’s GDP growth increased by 7.8% in the April-June quarter.
(with inputs from agencies)
Unlock a world of benefits! From informative newsletters to real-time stock tracking, breaking news and personalized newsfeeds – it’s all here, just a click away! log in now!
Catch all business news, market news, breaking news events and latest news updates on Live Mint. Download Mint News app to get daily market updates.
more less
Published: 17 Dec 2023, 05:53 PM IST
