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World Bank: India’s Long Road to Prosperity, 75 Years Behind US

World Bank: India's Long Road to Prosperity, 75 Years Behind US

According to the World Development Report 2024, it will take China over 10 years just to arrive at one-fourth of US pay per capita, Indonesia almost 70 years, and India 75 years.

India faces serious obstructions to turning into a major league salary country in the following couple of years, as a new World Bank study concentrate on found that India could require 75 years to arrive at a fourth of the US’s per capita Gross domestic product at the ongoing rate.

As indicated by the approach paper for ‘Viksit Bharat @2047’ put out by the Niti Aayog as currently, India will endeavor to be a $30 trillion economy by 2047 with a per capita income of $18,000 per annum from $3.36 trillion and $2,392 for every annum, respectively.

In India, the prime minister aims to boost the economy by 2047, the hundredth year of independence. However, the growth of middle-income countries is stagnating. The development paces of firms in India, Mexico, and Peru are far lower than those of firms in the US.

Thus, the Indian economy falls short on the system for effective competition among firms, hindering the allocation of resources to more productive consumers,” it said.

Extreme poverty

By the end of 2023, it was reported that 108 countries are in the middle-income, whose annual GDP per capita income is between $1,136 and $13,845. Which is home to 75% of the global population, every 2 people out of 3 live in extreme poverty.

In these nations, 40% of the Global Gross domestic product and 60% of Carbon emissions.

What is the “3i strategy” for countries to reach high-income status?

According to the World Bank Report

The 1i phase: Low-income countries can focus solely on policies designed to increase investment.

Be that as it may, when they achieve lower-middle-income status, they need to change gears and grow the strategy blend to the 2i stage.

The 2i phase is investment and infusion, which consists of adopting technologies from abroad and spreading them across the economy. 

At the upper-middle-income level, nations should change gears again to the last 3i phase.

The last 3i phases are Investment, Infusion, and Innovation.

In the development stage, nations never again get thoughts from the worldwide frontiers of innovation — they push the frontiers.

Somik V. Lall, Director of the 2024 World Development Report said “The road ahead won’t be easy, but it’s possible for countries to make progress even in today’s challenging conditions,” 

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