India cannot become developed economy by 2047 without boosting employment, says World Bank official

India will not be able to achieve its target of becoming a developed economy by 2047 without introducing reforms to boost employment, a senior World Bank official has said, reported Financial Times on Tuesday.

Prime Minister Narendra Modi has on several occasions emphasised the goal of India becoming a developed economy by 2047. In October, he urged citizens to make India a developed nation by 2047 when the country completes 100 years of independence.

However, Franziska Ohnsorge, the World Bank’s chief economist for South Asia has pointed out that achieving the 2047 target remains a distant dream “in a no-reform scenario”.

In a new report titled Jobs for Resilience, the World Bank said on Tuesday that in the 2010s, India’s employment growth was exceptionally weak compared to other emerging markets and developing economies.

Between 2000 and 2022, the employment ratio in India declined by more than in any other south Asian country, except Nepal. The employment ratio refers to the labour force currently employed against the total working-age population of a region.

“Overall during 2000-’23, employment growth was well below the average working-age population growth and the employment ratio declined,” the report said.

Ohnsorge called this a “missed opportunity”. She said: “It’s almost like the demographic dividend is being squandered.”

A demographic dividend refers to the economic growth potential stemming...

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