To transition into a developed economy, India's real GDP must achieve an annual growth rate of 7.6% over the next 25 years. This ambitious target necessitates a robust development strategy that encompasses various sectors and sustainable practices.
From 1993-94 to 2017-18, India experienced impressive economic growth, averaging 8.1%. To elevate its status to a high-income economy, the country must exceed this historical rate, aiming for a compound annual growth rate (CAGR) of 10.6% from 2023-24 to 2047-48. This translates to a nominal growth target of 9.1% during the same period.
The industrial sector plays a crucial role in India's economic framework. Currently contributing 25.6% to the GDP, this share must rise to 35%, with manufacturing alone expected to account for 25%. Enhancing this sector will be vital for achieving the overall growth targets.
Export growth is another critical area of focus. By leveraging service exports, India aims for a CAGR of 13.3%, which could increase the export share from 22.8% in 2022-23 to 30.5% by 2047-48. This growth in exports will be instrumental in supporting the economy's transition to a developed status.
India's development strategy also involves specific sectoral growth targets. The agricultural sector is expected to reduce its contribution to 5%, while the service sector is projected to increase its share to 60%. Achieving these targets requires respective CAGRs of 4.9% for agriculture and 13% for services.
A consistent growth trajectory will depend on a multifaceted development strategy. This approach must include structural changes, comprehensive development initiatives, and responsible resource utilization. The goal is to ensure that economic growth is sustainable and beneficial for all segments of society.
India's development should be characterized by inclusivity, gender justice, regional balance, employment intensity, and environmental sustainability. These principles are essential for fostering holistic progress that accommodates the needs of diverse populations while promoting economic stability.
Q1. What is the GDP growth target for India by 2047?
Answer: India aims to achieve a 7.6% annual GDP growth rate over the next 25 years to transition into a developed economy by 2047.
Q2. How much must India's industrial contribution increase?
Answer: The industrial sector's contribution to GDP should rise from 25.6% to 35%, with manufacturing accounting for 25%.
Q3. What is the target for service sector growth in India?
Answer: The service sector is expected to increase its share to 60%, requiring a CAGR of 13% to achieve this goal.
Q4. What export growth rate is India targeting?
Answer: India aims for a 13.3% CAGR in service exports, increasing the export share from 22.8% to 30.5% by 2047-48.
Q5. What are the principles of India's development strategy?
Answer: Key principles include inclusivity, gender justice, regional balance, and environmental sustainability to ensure holistic progress.
Question 1: What is the required annual GDP growth rate for India to become a developed economy by 2047?
A) 6.5%
B) 7.6%
C) 8.1%
D) 10.6%
Correct Answer: B
Question 2: By what percentage should India's industrial contribution to GDP increase?
A) 25%
B) 30%
C) 35%
D) 40%
Correct Answer: C
Question 3: What is the target CAGR for the service sector in India?
A) 10%
B) 12%
C) 13%
D) 15%
Correct Answer: C
Question 4: What is the expected export share of India by 2047?
A) 22.8%
B) 25.0%
C) 30.5%
D) 35.0%
Correct Answer: C
Question 5: Which principle is NOT part of India's development strategy?
A) Inclusivity
B) Gender Justice
C) Environmental sustainability
D) Centralized control
Correct Answer: D
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