India is the second fastest growing large economy and the fourth largest economy in purchasing power parity terms. But the economy’s strong fundamentals are hampered by handicaps such as infrastructural bottlenecks, poor educational and healthcare systems, an outdated bureaucracy and poor governance, according to the recently released book, ‘India 2039: An Affluent Society In One Generation’. Going forward, India could take one of two paths—a business-as-usual scenario, in which it ends up as a middle-income country with a per capita income of $5,500 and an economy of $8 trillion by 2039, or a high-growth path, which will see India as a $36 trillion economy (the world’s second largest) with a $22,000 per capita income by 2039.
Also See India and Affluence (Graphic)
Citing the experience of other middle-income countries such as Argentina, Brazil and Mexico, which saw spurts of high growth followed by periods of low or even negligible growth, the book charts the road map for India to make the leap to affluence in 30 years.
Graphics by Ahmed Raza Khan / Mint
Illustrations by Jayachandran / Mint