INDIA AS A DEVELOPED COUNTRY (Syllabus: GS Paper 3 – Economy)

Context: Niti Aayog recently announced that India's ambitious goal is to transform into a 'developed nation' by 2047, boasting a $30 trillion economy in its centenary year of independence, driven by substantial policy changes and governance reforms to be achieved by 2030.

• India's growth is closely interlinked with the growth of states. This will be the guiding spirit of India's inclusive and sustainable vision for the next quarter century.

Where does India stand?

• India's Economic Classification: India is categorized as both a "developing economy" and a "lower middle-income country."
• GDP Comparison: When examining the absolute level of GDP, India stands as one of the world's largest economies, although the United States and China maintain a significant lead.
• Per Capita Income: It is a crucial factor in classifying a country as "developed." In this aspect, India lags behind even Bangladesh.
• Progress in Human Development: India has shown consistent progress on various Human Development Index (HDI) metrics, with a focus on three critical factors:

oHealth and longevity of its citizens

oQuality of education

oStandard of living

• Life expectancy at birth in India: It has risen from approximately 40 years in 1947 to nearly 70 years today.

Developed Country

• There is no accepted universal definition of developed/developing country.
• A Developed Country is characterized by industrialization, a high quality of life, a well-developed economy, and advanced technological infrastructure when compared to less industrialized nations.
• On the other hand, developing countries are either in the midst of industrialization or are predominantly agrarian and pre-industrial in nature.