The former Reserve Bank of India (RBI) Governor, D Subbarao, shared insights into India’s economic future at a recent book launch event. He also highlighted the nation’s projected growth with its developmental needs. D Subbarao addressed the gathering in Saudi Arabia where he emphasised that even after becoming the third largest economy in the world by 2029, as planned by Prime Minister Narendra Modi, India will still be a poor country. He said that this does not call for a celebration, as becoming a rich country does not necessarily mean becoming a developed nation. D Subbarao said, “In my view, that is possible (India becoming the third-largest economy), but it’s not a celebration. Why? ” He further said, “We are a large economy because we are 1.40 billion people. And people are a factor of production. So, we are a large economy because we have people. But we are still a poor country.”
D Subbarao added that India is now standing in the fifth position in the world with the figure recorded at USD 4 trillion. According to PTI, with a per capita income of USD 2600, India is currently in the 139th position in the League of Nations in terms of per capita income.
He also pointed out that India is the poorest among the BRICS and G-20 nations. Suggesting further moves, D Subbarao said that the agenda for moving forward is clear that growth should be accelerated and also ensure that the benefits are going to be shared.
According to Subbarao, while recalling PM Modi’s statement of making India a developed country by 2047, to become a developed nation, four essential aspects are required. They are the rule of law, strong state, accountability, and independent institutions.
D Subbarao is an economist, banker, and retired IAS officer who was also the 22nd Governor of RBI. He served under the former Prime Minister Dr Manmohan Singh. At present, the former RBI Governor has been frequently writing in national and international media on the issues related to the current macroeconomic interest.
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