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An article published by the Reserve Bank of India (RBI) in its July bulletin has said that India's real Gross domestic product (GDP) needs to grow at 7.6 per cent annually over the next 25 years to achieve the per capita income level to become a developed economy. However, it said the task may not be easy, given the current level of capital stocks, infrastructure and skill sets of the people. During 2022-23, India recorded a growth of 7.2 per cent. The RBI's projection for GDP growth for current fiscal year (FY24) is 6.5 per cent. 

The article said India must rebalance its economic structure by strengthening its industrial sector so that its share in GDP rises from the current level of 25.6 per cent to 35 per cent by 2047-48. Agriculture and services activity would have to grow at 4.9 per cent and 13 per cent per annum, respectively, in the coming 25 years with their sectoral shares in GDP at 5 per cent and 60 per cent, respectively, in 2047-48. It also said that to become a developed country by 2047, India's per capita GDP needs to rise by 8.8 times from the current level. In other words, the current per capita GDP of $2,500 needs to rise to $22,000.

Further, the article said the sustainable path to development requires investment in physical capital and comprehensive reforms across sectors covering education, infrastructure, healthcare and technology to raise productivity. Collaboration between the government, private sector, civil society and citizens is essential for driving this transformation. No unique criterion is used to define a country as a 'developed' one. The World Bank classifies countries as low-income, lower-middle-income, upper-middle income and high-income based on Per Capita Income (PCI).