India can sustain and accelerate its economic growth by focusing on labour-intensive industry for exports
What will it take to make India a developed nation by 2047? We must not only sustain but accelerate our economic growth. Growing at 8% in real terms will just about get us to a $20tn economy by 2047 – or a per capita income of $12k, comparable to where China is today. Clearly, sustained and rapid growth over 8% is essential to lift millions of Indians out of poverty and create the 200mn-plus high-quality jobs India needs.
Laser-sharp focus on exports is key to achieving and sustaining the required rate of growth. The past 70 years economies have only been able to consistently raise living standards for their population by targeting high growth via exports. Taiwan, Japan, South Korea, China and now Vietnam, have all grown rapidly by taking advantage of their labour force to make goods for the world market. India’s own growth story has been export-led, but as yet just in service and capital-intensive sectors.