Reserve Bank of India

RBI commented India Needs Average Annual 7.6% GDP Growth To Become Developed By 2047

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Reserve Bank of India In its monthly bulletin, RBI outlined that India must achieve over the next 25 years to become a developed economy with high per capita income in 2047, as per World Bank standards.

Reserve Bank of India monthly Bulletin

In the monthly bulletin, RBI said that India must target capita GDP in nominal terms of a CAGR of 10.6% (9.1%), thus achieving the targeted 9.1% growth. In their report, they say that India’s industrial sector should increase its share from the current 25.6% to 35% by 2047-48, with manufacturing occupying 25% of the total value added, thus necessitating the industrial sector to grow at a nominal CAGR of 13.4%.

Charts and Table:

IndicatorCurrent Value (2022-23)Target Value (2047-48)Required CAGR
Real GDP Growth Rate (%)–7.6%–
Per Capita GDP (USD)$2,500$21,66410.6% (nominal)
Industrial Sector Share (%)25.6%35%13.4% (nominal)
Services Share in GDP (%)22.8%30.5%13.3% (nominal)
Agriculture Sector Share (%)–5%4.9% (nominal)
Services Sector Share (%)–60%13% (nominal)

What was the suggestion provided by RBI?

The suggestion provided by RBI is provided are as follows
1. Capita GDP in nominal terms would require a CAGR of 10.6% (9.1%)
2. India’s industrial sector should increase its share from the current 25.6% to 35% by 2047-48
3. GDP is expected to increase from 22.8% in 2022-23 to 30.5% by 2047-48

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