 "Amitabh Kant, Deccan Conversations")
Despite being among the top-five global economies, India is still classified as a ‘developing nation’. But why? It was a social media question that prompted Amitabh Kant, former chief executive of NITI Aayog, to explain why India is still far from being a ‘developed nation’.
“A developing country is technically a country where the Gross National Income per capita is $11,905 or less. Even China, Brazil and Malaysia are regarded as developing countries,” said Kant, in response to a query raised on X (formerly Twitter).
India’s Gross National Income (GNI) per capita was $6,951 in 2022 and $6,542 in 2021, according to the Human Development Index.
A developing country is technically a country where the Gross National Income per capita is $11,905 or less. Even China, Brazil & Malaysia are regarded as developing countries. https://t.co/Vdg7OnxkL3
— Amitabh Kant (@amitabhk87) May 21, 2024
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Kant’s remarks coincide with a projection by global brokerage Jefferies, forecasting India’s GDP to reach $5 trillion within the next four years, surpassing economic powerhouses Japan and Germany.
Jefferies also anticipates India becoming the world’s third-largest economy by 2027, with its stock market expected to reach nearly $10 trillion by 2030, thus compelling major global investors to take notice.
The global brokerage predicted, “Over the next four years, India’s GDP will likely touch $5 trillion making it the 3rd largest economy by 2027, overtaking Japan and Germany, being the fastest growing large economy with the tailwinds of demographics [consistent labour supply], improving institutional strength and improvement in Governance.”
Kant also expressed confidence earlier this week in India’s economic trajectory, forecasting its overtaking of Germany and Japan by 2027. He also highlighted analysts’ projections indicating that India would contribute 30 per cent of global GDP growth between 2035 and 2040.
“By 2027, we will overtake Germany and Japan. Analysts are right in saying that 30 per cent of the global GDP growth will come from India between 2035 and 2040,” Kant said.
He also highlighted India’s significant strides in economic reforms, transitioning from the “fragile five” to ranking among the world’s top five economies. “Because India has carried a huge amount of structural reforms, it has moved from fragile five to top five and has grown at about 8.4 per cent in the last three quarters,” he said.
Additionally, Kant urged Indian enterprises to adopt a global outlook and emphasise quality to penetrate international markets, thereby propelling growth. “Indian companies must start thinking globally to penetrate global markets for accelerated growth. They should also focus on quality,” he emphasised.
