Hyderabad: India needs to grow seven to eight percent annually to become a developed nation with a per capita income of $13,000 by 2047, former Reserve Bank Governor C. Rangarajan said on Tuesday.
Stating that innovation cannot be a single solution to reduce inequalities or poverty, the former chairman of the Prime Minister’s Economic Advisory Council said that in addition to a faster growth rate, the country might need social safety nets, such as cash subsidies and basic income.
“I would say that real growth between 7 and 8 percent will bring it closer to the developed economy because the developed economy, by definition, shows a per capita income of $13,000 or more. India’s per capita income is now US$2,700. That means per capita income will have to increase five times,” he told PTI. (Also Read: PM announces Surya Ghar Muft Bijli Yojana to give 300 units of free electricity every month to 1 crore households)
According to him, if the exchange rate remains at a lower level or if prices rise, then nominal income will increase, then India can become a developed nation. “Therefore, I am saying that the calculation of the dollar value of the Indian economy depends on the real growth, the level of inflation and the exchange rate,” he added.
Raghunath Anant Mashelkar, former Director General of the Council of Scientific and Industrial Research (CSIR), today delivered the 13th Foundation Day lecture of ICFAI, while Rangarajan, Chancellor of the University, presided over the function in virtual mode. In his speech, referring to innovations in technology, Rangarajan opined that model economic growth has been driven by rapid and persistent observation of technology.
He also said that economists have estimated that half of the growth experienced by developed countries in the last century and a half or more has been due to technology. The former RBI governor said more attention should be paid to increasing livelihood opportunities for people at the bottom of the pyramid and technology should focus on innovations that provide the poorest people with facilities that are affordable and accessible. (Also Read: Stock Markets Rebound on Buys in Banking, IT Stocks; Sensex Jumps 482 Points)
Inclusive innovation leads to affordable access to quality goods and services, helping to create livelihood opportunities for excluded populations on a long-term sustainable basis. And play a huge role in dismantling inequality, Mashelkar said in his speech. In his welcome address, LS Ganesh, Vice Chancellor, ICFAI, said that innovations are a separate phenomenon and could be used to address the virulent challenge of inequality facing the world.