Need to grow at 7-8% to become developed nation by 2047: Ex-RBI Guv

India needs to grow at seven to eight per cent annually in order to become a developed nation with $13000 per capita income by 2047, former Reserve Bank Governor C Rangarajan said on Tuesday.

Asserting that innovation cannot be a single solution to reduce inequalities or poverty, the former Chairman of the Prime Minister's Economic Advisory Council said besides faster growth rate, the country may need social safety nets such as subsidies in kind of cash and basic income.

I would say that the real growth between 7 per cent and 8 per cent will take it closer to the developed economy, because the developed economy by definition shows per capita income of $13,000 or more. India's per capita income is now at $2700. That means per capita income will have to increase by five times, he told PTI.

According to him, if the exchange rate is kept at a lower level or if the prices go up then nominal income will increase, then India can become a developed nation.

Therefore, I am saying that the calculation of dollar value of the Indian economy depends upon the real growth, the level of inflation and exchange rate, he added.

Raghunath Anant Mashelkar, Former Director General of Council of Scientific & Industrial Research (CSIR), today delivered ICFAI 13th Foundation Day Lecture While Rangarajan, Chancellor of the University, presided over the function in virtual mode.

In his speech, referring to the innovations in technology, Rangarajan opined that model economic growth has been spurred by a rapid and persistent observation of technology.

He also said that economists have estimated that one half of the growth experienced by the developed countries in the last one and a half centuries or more has been due to technology.

The former RBI Governor said more and increased attention has to be on increasing the livelihood opportunities for the people at the bottom of the pyramid and technology should focus on innovations that provide the poorer people the facilities that are affordable and accessible.

An inclusive innovation leads to affordable access to quality goods and services, which helps create livelihood opportunities for excluded populations on a long-term sustainable basis. And play a huge role in dismantling inequality, Mashelkar said in his address.

In his welcome address, L S Ganesh, Vice Chancellor, ICFAI said that innovations are a separate phenomenon and they could be used to tackle the virulent challenge of inequality which the world faces.