India's Transformation into a High-Income Nation is Full of Uncertainties

India's path to a high-income, developed nation is fraught with challenges. While certain western and southern states are getting close to being upper-middle-income, most states are still in the low or lower-middle-income bracket. The challenge of developing the nation is two-pronged: seeing that western and southern states do not fall into the middle-income trap, and stimulating growth in poorer states. Issues like trade policy, institutional strengthening, and political to economic power equation will be key determinants. Maintaining the historical 6% growth rate or reaching the necessary 8% to become a high-income economy is far from certain in the absence of carefully considered policy and careful economic analysis.

 

Source: The Indian Express