India needs to grow at 8% to become a developed nation by 2047: World Bank

As the global economy grapples with challenges and uncertainties, India emerges as a beacon of hope, displaying robust economic growth amid a backdrop of sluggish global recovery.

In an interview with CNBC-TV18, Anna Bjerde, Managing Director of Operations at the World Bank, shed light on India's economic prospects, emphasising its potential and the necessary measures to achieve sustainable growth.

In a recent forecast, the World Bank projected global growth for 2024 at a modest 2.4%. Bjerde highlighted that this figure is buoyed by growth in emerging markets, with India leading the charge at an estimated 6-7%. Despite the global economic challenges, India's high growth rate positions the country favourably.

However, Bjerde points out that for India to realize its aspiration of becoming a high-income and developed nation by 2047, it needs to sustain an annual growth rate of around 8%.

To maintain its upward trajectory, she advised India to continue its focus on renewable energy. Bjerde emphasised the importance of this path, considering the critical role energy transition plays in economic development.

“Energy transition is something that pretty much every country is thinking through. Energy consumption tends to go hand in hand with economic growth, and India has already transitioned quite a bit, I believe 40% of installed capacity is new and renewables. But there's more that can be done,” Bjerde said.

Acknowledging the significance of logistics and digital connectivity, the World Bank is actively engaging with India to support advancements in these sectors. Bjerde highlighted the importance of efficient railway connectivity and digital infrastructure, commending India's strength in the latter. She highlighted that the focus now needs to shift to optimising these strengths to ensure the widespread availability of services, thereby contributing to increased growth and job creation.

Bjerde lauded India's "innovative approach" to addressing hard-to-decarbonise industries through green hydrogen initiatives. She expressed excitement about India's efforts to deploy green hydrogen in heavy industries and manufacturing, where conventional decarbonisation methods face challenges.

Bjerde underscored the need for policies that foster investments in emerging technologies, ultimately driving demand and technological deployment.