India Poised to Become Second-Largest Economy by 2047: Martin Wolf

New Delhi, Jul 8 (KNN) In a significant event marking the 13th CUTS International 40th-anniversary, Martin Wolf, the Chief Economics Commentator at The Financial Times, delivered a thought-provoking lecture titled "What would it take for India to become a developed country by 2047?" at the Indian International Centre on Friday.

Martin Wolf projected a robust future for India, highlighting that by 2047, India is likely to become the world's second-largest economy, using the Purchasing Power Parity (PPP) method, trailing China but surpassing the United States. "Such a position of strength has significant implications for the world," Wolf emphasised.

Despite global economic uncertainties, he underscored that India possesses substantial opportunities to sustain and accelerate its growth.

Wolf articulated the critical areas where India should focus its efforts: maintaining openness, investing in both physical and human capital, and leveraging its comparative advantage in services. He pointed out that effective domestic policies and strategic international relations are paramount to India’s progress.

Suman Bery, Vice-Chairperson of NITI Aayog, reiterated the ambitious goal of "Viksit Bharat" by 2047, stressing the need to realise supply-side growth potential, scale up manufacturing, and enhance innovation.

Neelkanth Mishra, Chairperson of UIDAI, highlighted the importance of modern infrastructure and smart urbanisation. He proposed a "small-yard high-fence" strategy to navigate economic relations with stronger economies like China, emphasising targeted protection and strategic autonomy.

Montek Singh Ahluwalia discussed the significance of good governance and a robust policy framework. He noted that India could capitalise on its current advantageous position compared to China, by realigning Free Trade Agreement (FTA) standards amid global uncertainty.

The discussants delved into various challenges and opportunities that lie ahead for India. They discussed the impact of global "slowbalisation," where the growth of global trade has decelerated, and the need for India to adapt by focusing on strategic partnerships and fostering an environment conducive to foreign direct investment.

Wolf's presentation also touched on Prime Minister Narendra Modi's aspirations for India. He explained that while it might be challenging for India to become a high-income country by 2047, achieving an upper-middle-income status is more realistic.

Wolf underscored the need for sustained economic reforms, prudent policy measures, and strategic global positioning to navigate the complex international landscape.

The event concluded with a call to action for policymakers, industry leaders, and stakeholders to collaborate and drive the necessary reforms and initiatives.

(KNN Bureau)