If growth is not more than 6%, India's economy will remain in the lower middle range by 2047. Raghuram Rajan
Speaking at a program in Hyderabad, the economist warned that if the nation does not grow faster, it will age demographically before becoming richer, meaning that at that point, it will also have to deal with the burden of an aging population.
According to the former RBI chief, some southern states are experiencing slower population growth because their fertility rates have dropped below those of reproduction.
According to former Reserve Bank Governor Raghuram Rajan, India will reach the end of the demographic dividend by 2047 (Amrit Kaal) and still be classified as a lower middle-income country if the country's growth rate stays at 6% per year without any population growth.
Speaking at a Manthan-hosted event in Hyderabad, the economist warned that if the nation does not grow faster, it will age demographically before becoming richer, meaning that at that point, it will also have to deal with the burden of an aging population.
"Do the math: at 6% annually, you double every 12 years, meaning that in 24 years, our per capita income will have increased by four times. As you are aware, India's per capita income currently stands at just under $2,500. We obtain $10,000 for each person when we multiply by four.Thus, if you do the math, we won't get rich until 2047 at our current rate of growth, which is strong and among the highest in the G20, he explained.
According to the former RBI chief, some southern states are experiencing slower population growth because their fertility rates have dropped below those of reproduction.
He expressed his opinion that if we don't grow faster, we will grow old before we get rich, meaning that at that point, we will all have to deal with the burdens of an aging population. Put another way, we will begin the process of aging at that point.
He claims that the country will not become wealthy before it ages and that the current rate of growth will not be sufficient to employ all those who are entering the labor force.
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