Key Points
But India might run into a roadblock typical of fast-growing economies which aim at a high-income status: the middle income trap...
India's ambition to become the third-largest economy by 2026-27 necessitates a cohesive grand strategy including prioritising the resolution of the middle-income trap as a critical challenge to our long-term aspirations, he said...
More than 100 countries, including India and China, are at risk of entering a middle-income trap and failing to become wealthy nations, a recent World Bank report has said..
If they stick with the old playbook, most developing countries will lose the race to create reasonably prosperous societies by the middle of this century, said Indermit Gill, Chief Economist of the World Bank Group and Senior Vice President for Development Economics.. "First focus on investment; then add an emphasis on infusion of new technologies from abroad; and, finally, adopt a three-pronged strategy that balances investment, infusion, and innovation," Gill said...
"In order to avoid the middle-income trap, India needs to be more open to free trade and align itself with global value chains," Niti Aayog CEO Subrahmanyam said, adding India needs to cut tariffs massively...
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