This visionary and thought-provoking study is a must read for political leaders, policymakers, business executives, and leaders of civic society interested in India's long-term development. It presents a much needed longer term vision of Indian society and economy within which today's policy debates and actions must be anchored. The volume presents a persuasive case that if India succeeds in sustaining its recent economic success over the longer term (as many East Asian economies have done in the past), India can realistically aspire to become an affluent society within one generation. The study is being released just as the new Indian government is taking office in a political environment that presents a truly unique opportunity to put India into a longer term sustained growth trajectory with financial stability.
Chapter 1: India's Promise: An Affluent Society in One Generation
India's Promise: An Affluent Society in One Generation
Economic History in the Making
In 2007, India's per capita GDP was $940 (at market exchange rates). Based on this performance, the World Bank reclassified it from a low income country to a lower middle income country in 2008. In 2007, the least affluent “advanced economy” on the International Monetary Fund's (IMF) list was Taiwan, with a GDP per capita of $16,768. Although the IMF uses other criteria as well as income to determine when an economy should be classified as “advanced,” income is a good proxy.1 On this basis India could become an advanced economy by 2035. In other words, India has the potential to go from a poor, ...