Avoiding the middle-income trap

Unless substantial reforms are undertaken to improve India's freedom rankings, it may remain stuck within the Upper-Middle-Income range beyond 2030

middle income, GDP, income, per capita income

Illustration: Binay Sinha

Devangshu Datta
In 2018, the government set a target of achieving a gross domestic product (GDP) of $5 trillion by 2025. The GDP was then approximately $2.7 trillion, implying a target growth rate of over 9 per cent. The most optimistic guesses for India’s GDP circa March 2024 are around $4.1 trillion, with the $5 trillion mark looking likely to be crossed circa 2027.

The World Bank assessed GDP at around $3.4 trillion in 2022, and some estimates indicate the 2024 GDP is closer to $3.9 trillion. This looks reasonable with a growth rate of about 7 per cent ($4.1 trillion would
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 09 2024 | 10:38 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com