In a recent podcast on YouTuber Akash Banerjee’s channel, former RBI Governor Raghuram Rajan addressed the contrasting realities within the Indian economy. According to Rajan, while certain regions, such as Noida or Gurgaon, mirror a “first-world” economy, others lag behind, comparable to conditions seen in third-world or sub-Saharan African nations.
“Parts of the Indian economy are first world,” Rajan asserted, emphasizing that a significant challenge lies in bridging the gap and ensuring a uniform economic landscape across the nation by 2047. This observation comes amid Minister of State for Finance Pankaj Chaudhary’s recent statement, envisioning India as a $5 trillion economy on its way to becoming an advanced economy by 2047, during the ‘Amrit Kaal.’
Acknowledging India’s current GDP standing at $3.7 trillion as of the fiscal year 2022-23, Rajan expressed skepticism about achieving the $10,000 per capita mark by 2047. Despite the optimistic projections, he noted that India, currently at $2,500 per capita, would likely attain lower to moderate middle-income status. Rajan further emphasized the need for unconventional strategies, deviating from the development paths followed by other countries.
Addressing the critical issue of malnutrition, Rajan called for a candid acknowledgment of the problem rather than sweeping it under the carpet. He urged a mission-mode approach, stating, “Measure us, every year we are gonna bring it down until it comes to 0 in the next 5 years. It is a fixable problem.” Drawing attention to the stark regional disparities, he highlighted Kerala’s 6 percent malnutrition rate compared to some areas in Bihar and Jharkhand, where the figures are worse than 35 percent. Rajan emphasized the potential to learn from successful models within India, citing OECD levels at 6 percent.
