India will need rapid economic reforms and structural changes to achieve developed-country status by 2047, NITI Aayog Vice Chairman Ashok Kumar Lahiri said, stressing the importance of education, health and infrastructure.
New Delhi, October 16 — India will need rapid economic reforms and major structural changes to become a developed nation by 2047, NITI Aayog Vice Chairman Ashok Kumar Lahiri said on Friday.
Speaking at the SRCC Centenary Conclave, Lahiri cited the experience of countries such as China, South Korea, Taiwan and Japan, which rapidly increased per capita incomes and transitioned into high-income economies.
He said a high-income economy is generally defined on the basis of a threshold for gross national income per capita. For 2027, that threshold is around $14,375.
Factoring in inflation and future income levels, Lahiri said one estimate suggests India may need a per capita income of around $18,000 to $20,000 by 2047 to qualify as a high-income economy.
India’s current per capita income stands at around $2,813, according to Lahiri.
To reach approximately $18,000 by 2047, India’s per capita income would have to increase about six-and-a-half times over the next 21 years.
Lahiri estimated that this would require an average nominal annual growth rate of about 9.25% in per capita income during the period.
He said the target should not be seen as unrealistic because several other Asian economies have achieved similarly rapid increases in income.
However, he emphasised that such growth would require sustained reforms and structural transformation.
Lahiri identified education, healthcare and infrastructure as three critical areas for supporting faster economic growth.
He argued that improvements in education and health are essential because the quality of a country’s human capital directly affects productivity and long-term economic performance.
According to Lahiri, human capital combines with raw materials, machines and technology to produce goods and services, making education and health central to both economic growth and overall well-being.
The remarks come as India continues to pursue its long-term Viksit Bharat 2047 goal of becoming a developed economy by the centenary of Independence.
Achieving the required rise in income will depend not only on headline economic growth but also on improving productivity, investing in infrastructure and strengthening human capital across the country.
