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Former Reserve Bank of India (RBI) governor Raghuram Rajan has said that India needs to focus more on education and healthcare to become a developed economy by 2047. He highlighted the fact that India has maintained an average growth rate of 6 per cent over the past 25 years, which is no easy feat for any country.

Rajan emphasised the need for governance reforms, as well as a focus on education and healthcare, to build a strong foundation. He noted that if India wanted to become a developed country by 2047, it needed to achieve an annual growth rate of more than 7 per cent. He added that at a growth rate of 7 per cent, India’s per capita will grow from the current $2,400 to $10,000 in 2047, which will put the country in the low middle-income bracket.

He stressed the importance of determining the future direction for India's growth, especially considering that the demographic dividend the country currently enjoys will diminish after 2050. He said to sustain growth, India must prioritise education, healthcare, and governance reforms. He also emphasised the need for balanced growth across all sections of society, as consumption growth is currently only strong among the upper income levels.