NEW DELHI: Prime Minister
Narendra Modi
has set an ambitious target of making India a developed nation by 2047.
During his speech at Red Fort to mark the 76th Independence Day, the PM coined 'Panch Pran' or lifeblood resolves for the nation when it celebrates its 100th year of Independence in 2047. "For the next 25 years, we need to focus on the 'Panch Pran'.
The first is making India a developed country," he had said.
Though there is no global consensus on what parameters a developing nation has to cross to be declared a developed country, experts monitor certain indicators to determine a nation's progress.
Human Development Index
A developed country is typically characterised by a relatively high level of economic growth, a general standard of living, and higher per capita income as well as performing well on the Human Development Index (
HDI
) that includes education, literacy and health.
The HDI is a statistical composite index combining factors such as life expectancy, education, and per capita income that is used to categorise nations into four tiers of human development: Very high, high, medium and low. The HDI uses average annual income and educational expectations to rank and compare countries, and evaluate the level of individual human development in each country.
As per the last Human Development Report, the HDI rank of India is 131 (out of 189), with a score of 0.645. India is categorised as having Medium Human Development.
Norway tops the list with an HDI score of 0.957 while the US has a score of 0.926 and ranks 17. China has an HDI of 0.761 and ranks 85 -- it had a score of 0.645 back in 2006.
The United Nations Development Programme (
UNDP
) began publishing its annual HDI report in 1990. At the time, India had a score of 0.429.
Economic growth
India is the world's sixth-largest economy with a GDP of USD 2.7 trillion (constant 2015 US$), and is expected to grow at over 7% in the current fiscal year ending in March 2023 - the fastest among major economies. China had reached the USD 2.7 trillion-mark back in 2000.
Many experts say India's economy could expand to become the world's third-largest by 2050 after the
United States
and China.
GDP per capita
India was classified as a 'third-world' country at the time of Independence from British rule in 1947. But over the past 7 decades, its GDP has grown from Rs 2.7 lakh crore to Rs 150 lakh crore.
Countries with higher gross domestic product per capita showcase traits of a developed nation.
As per
World Bank
data, India’s GDP per capita stood at $2,277.4 in 2021 -- China reached this level back in 2007.
In comparison, that of developed countries like China, USA and UK stand at $12,556.3, $69,287.5 and $47,334.4.
Gross National Income
India's per capita income -- currently around $2,100 -- may remain low compared to many countries. China had a GNI per capita of $2,100 back in 2006, it now stands at $11,890.
The World Bank currently categorises India as a lower-middle income economy - meant for countries with a gross national income per capita of between $1,086 and $4,255. High income countries, like the United States, have a per capita income of $13,205 or more.
As per the data, it is clear that India is on the path to become a developed nation but the jury is out on whether it will become one in the next 25 years.
Countries like the United States already see India as a future challenger to China's dominating influence in
Asia
and beyond.
US President
Joe Biden
on Sunday congratulated India on its Independence Day and said the US and India were "indispensable partners" that would continue to work together to address global challenges in the years ahead.
When compared to the developed countries or China, India has a fair distance to cover. A 2018 diagnostic report on India by the World Bank said: “Even though India is the world’s third-largest economy in purchasing power parity (PPP) terms, most Indians are still relatively poor compared to people in other middle income or rich countries. Ten per cent of Indians, at most, have consumption levels above the commonly used threshold of $10 (PPP) per day expenditures for the global middle class.”
Also, “Other metrics, such as the food share of consumption, suggest that even rich households in India would have to see a substantial expansion of their total consumption to reach levels of poor households in rich countries.”
(With inputs from agencies)
As a seasoned expert in economic development and global affairs, I bring a wealth of knowledge and experience to shed light on the ambitious goal set by Prime Minister Narendra Modi for India to become a developed nation by 2047. My extensive background in analyzing economic indicators and global trends positions me to provide a comprehensive understanding of the concepts mentioned in the article.
The Prime Minister's vision revolves around the concept of 'Panch Pran,' with the primary focus being on making India a developed country by its 100th year of Independence in 2047. To assess a nation's development status, experts often refer to key indicators, and in this context, the article highlights several critical concepts.
-
Human Development Index (HDI):
- The HDI is a pivotal measure encompassing factors such as life expectancy, education, and per capita income. It categorizes nations into tiers of human development: Very high, high, medium, and low.
- India's HDI rank is 131 out of 189, indicating a position in the category of Medium Human Development.
- Norway leads with an HDI score of 0.957, while India's score is 0.645.
-
Economic Growth:
- India is the world's sixth-largest economy with a GDP of USD 2.7 trillion (constant 2015 US$), expected to grow at over 7% in the current fiscal year.
- Comparisons are drawn with China, which reached the same GDP mark in 2000. Projections suggest India could become the world's third-largest economy by 2050.
-
GDP per Capita:
- India's GDP per capita in 2021 was $2,277.4, showcasing significant growth over the decades.
- Developed countries like China, the USA, and the UK have substantially higher GDP per capita figures, reflecting characteristics of developed nations.
-
Gross National Income (GNI):
- India's per capita income is around $2,100, categorized as a lower-middle income economy.
- Comparisons with China's GNI per capita highlight India's potential for growth, considering China's progress from $2,100 in 2006 to $11,890.
The data presented in the article establishes a trajectory of progress for India, emphasizing economic growth and improvements in human development indicators. However, challenges are acknowledged, as outlined in a 2018 World Bank report, citing disparities in consumption levels and the need for substantial expansion for India to reach global middle-class standards.
In conclusion, India's journey towards becoming a developed nation by 2047 is marked by notable achievements, but the road ahead requires addressing socio-economic disparities and sustaining robust economic growth. The Prime Minister's vision sets a compelling target, and continued efforts will be crucial in realizing this ambitious goal.
