We May Cheer, but Can't Celebrate Becoming 3rd Largest Economy: Former RBI Governor Subbarao

In the realm of global economics, the aspiration to climb the ranks and become one of the world's top economies is often hailed as a significant milestone. 

However, according to former Reserve Bank of India (RBI) Governor D. Subbarao, the vision of India becoming the third-largest economy by 2029 should not be cause for celebration. 

In a recent statement, Subbarao articulated a sobering perspective on India's economic trajectory, shedding light on the complexities underlying mere GDP rankings.

Subbarao's viewpoint challenges the conventional narrative surrounding economic growth and national prosperity. 

While India's sheer size, with a population of 1.40 billion, propels it into the ranks of the largest economies, the former RBI governor emphasizes that this demographic factor alone does not equate to widespread wealth or development. 

As he aptly puts it, "We are a large economy because we have people. But we are still a poor country."

Drawing attention to the stark reality of income disparity, Subbarao highlights India's position as the fifth-largest economy juxtaposed with its relatively low per capita income of $2,600. 

This places India at the 139th position globally, lagging behind even within the BRICS and G-20 nations. 

Despite ambitious visions articulated by political leaders, Subbarao stresses the fundamental importance of foundational elements such as the rule of law, a strong state, accountability, and independent institutions in driving sustainable development.

Subbarao's perspective serves as a reminder that economic growth should not be measured solely by GDP figures or global rankings. 

Instead, the focus should be on inclusive growth that uplifts all segments of society. Accelerating growth rates must be accompanied by efforts to ensure that the benefits are shared equitably among citizens. 

Without addressing underlying issues of poverty, inequality, and institutional weaknesses, the mere ascent in economic rankings remains hollow.

As India navigates its path towards economic advancement, Subbarao's insights urge policymakers and stakeholders to adopt a holistic approach that prioritizes human development alongside economic expansion. 

While we may cheer at the prospect of climbing the economic ladder, true celebration can only be warranted when prosperity is inclusive, and the well-being of every citizen is secured. 

As Subbarao succinctly puts it, "The agenda for moving forward is quite clear."