State Bank of India (SBI) Chairman CS Setty has emphasized that India needs to achieve an average annual growth rate of 8-9% by 2036 to realize the government’s ‘Viksit Bharat’ (Developed India) vision. This ambitious target necessitates a substantial investment of approximately ₹1,094 lakh crore, with ₹323 lakh crore expected from banks and ₹643 lakh crore from the equity market. To support this growth, domestic savings rates must increase to 33.5%. The government aims to transform India into a $30 trillion economy by 2047, marking the centenary of its independence.
The Economic Survey 2024-25 echoes this sentiment, stating that India must sustain an average growth rate of around 8% at constant prices for the next one to two decades to achieve its ‘Viksit Bharat’ aspirations by 2047. This requires increasing the investment rate to approximately 35% of GDP from the current 31%. Additionally, the development of the manufacturing sector and investments in emerging technologies such as artificial intelligence, robotics, and biotechnology are crucial.
Furthermore, the World Bank’s India Country Director, Auguste Tano Kouame, has highlighted that to become a developed economy by 2047, India must achieve a growth rate of 8%. While the World Bank maintains India’s growth forecast at 6.3% for FY24, Kouame emphasizes the need for private investment to support higher growth rates.
In summary, achieving an 8% growth rate is deemed essential for India’s progress toward becoming a developed nation by 2047. This goal requires significant investments from both the banking and equity sectors, increased domestic savings, and a focus on developing key industries and technologies.
