India’s status as a developing nation despite its ranking among the top five global economies has prompted former NITI Aayog CEO Amitabh Kant to shed light on the reasons behind this classification. According to Kant, a country is considered developing if its Gross National Income (GNI) per capita falls below $11,905. Even though India boasts a strong economy, its GNI per capita was recorded at $6,951 in 2022 and $6,542 in 2021, as per the Human Development Index. This places India alongside countries like China, Brazil, and Malaysia in the developing category.
Kant’s insights coincide with a forecast by global brokerage Jefferies, which predicts India’s GDP to reach $5 trillion within the next four years, surpassing economic giants like Japan and Germany. The brokerage also anticipates India becoming the world’s third-largest economy by 2027, with its stock market projected to reach nearly $10 trillion by 2030. These projections have garnered attention from major global investors, highlighting India’s potential for significant economic growth.
Furthermore, Kant remains optimistic about India’s economic trajectory, foreseeing its surpassing of Germany and Japan by 2027. He also points out analysts’ projections indicating that India is poised to contribute 30% of global GDP growth between 2035 and 2040. Kant attributes India’s economic progress to substantial structural reforms, which have propelled the country from being part of the “fragile five” to ranking among the top five economies globally. India’s impressive growth rate of about 8.4% over the last three quarters further underscores its economic resilience.
In light of these developments, Kant emphasizes the need for Indian enterprises to adopt a global outlook and prioritize quality to tap into international markets effectively. He believes that by embracing these strategies, Indian companies can accelerate their growth and solidify their presence on the global stage. Overall, Kant’s insights shed light on India’s journey towards economic development and its potential to become a major player in the global economy in the coming years.
