{"id":"f-e550251d2f-e3e6ca57-be3c-5b98-841e-7cd88c051684","title":"India has progressed on many fronts, it must avoid middle-income trap: PM's eco advisory panel chief","description":"S Mahendra Dev at the 104th SKOCH Summit urged India to avoid the middle-income trap, boost private investment, and focus on reforms for inclusive, prosperous growth, citing EAC-PM and NITI Aayog.","timestamp":1768050988,"category":"national_v_two","headline":"India has progressed on many fronts, it must avoid middle-income trap: PM's eco advisory panel chief","modifiedHeadline":"India Must Avoid Middle-Income Trap: PM Panel","subCategories":["scid_2c0dc4ac"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"89","fcSummary":"India must avoid the middle-income trap by building on its achievements with reforms, resource allocation, and efficiency-led growth, according to EAC-PM Chairman S Mahendra Dev. He emphasized the importance of increasing manufacturing and services, along with private capital.","summary":"India must evade middle-income trap! PM's panel urges reform, investment for inclusive growth at SKOCH Summit, echoing EAC-PM & NITI Aayog.","ctaUrl":"https://trends.glance.com/newz/India_News/IN/en/cnbc-tv18/f-e550251d2f-e3e6ca57-be3c-5b98-841e-7cd88c051684","sourceUrl":"https://www.cnbctv18.com/india/india-has-progressed-on-many-fronts-it-must-avoid-middle-income-trap-pms-eco-advisory-panel-chief-ws-l-19818408.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/88nI9SojbC90.webp","content":"India has progressed on many fronts, and the country must avoid the middle-income trap and build on its achievements to create a society and economy that is prosperous and inclusive, Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev said on Saturday, January 10.\n\n
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\n Addressing the '104th SKOCH Summit', Dev said that India has undertaken numerous reforms, including GST reforms, RERA, IBC, 100 % FDI in insurance, private participation in nuclear energy, quality control orders, and ease-of-doing-business initiatives.\n
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\n \"India has progressed on many fronts. With the right allocation of resources across sectors, strong reforms, and efficiency-led growth, India can significantly increase its global economic share,\" he said.\n
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\n The eminent economist said that political stability, macroeconomic stability, and a large domestic market are key strengths of India.\n\n
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\n \"...India must avoid the middle-income trap and build on its achievements to create a society and economy that is prosperous, inclusive, and pro-nature,\" he said.\n
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\n The Middle-Income Trap is a situation where a country's economic growth stagnates after becoming a middle-income nation, unable to make the leap to high-income status, as seen in Latin America.\n
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\n Dev noted that structural transformation remains crucial as agriculture still employs 46 % of workers but contributes only 15 % of GDP.\n
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Also read: India’s 'Goldilocks' run to continue for next two years; FY27 growth likely at 6.5-7%: EAC-PM Chair\n
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\n \"Manufacturing employs only 11-12 %, with a 17 % GDP share. Increasing manufacturing and services is essential,\" he said.\n\n
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\n Dev said that the government investment through budgets and capital formation is important, but private capital must increase significantly.\n
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\n \"Private investment's share has declined in recent years, and without its revival, we cannot reach an investment rate of 35-38 %,\" he said.\n
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\n Pointing out that the Economic Survey suggests that 8 % growth is required to achieve the developed-economy status, Dev said there are two benchmarks: NITI Aayog suggests a per capita income of $18,000, while others argue $14,000 may suffice.\n\n
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\n \"Therefore, 7-8 % growth could be adequate,\" he said.\n
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\n According to him, while there are also global headwinds: geopolitical tensions, rising protectionism through tariffs, and weakening multilateral institutions such as the WTO, the Government of India is addressing these through a four-fold approach: supporting affected industries and MSMEs, diversifying export markets, accelerating free trade agreements, and continuing dialogue with major partners like the US.\n
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\n He said India's exports have diversified, including at the state level.\n\n
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\n \"For example, seafood exports from Andhra Pradesh are being redirected to Australia. Free trade agreements are being fast-tracked, and engagement with the US remains critical due to its influence on investment sentiment,\" Dev said.\n
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\n Noting that exports account for only about 20 % of India's GDP, while 80 % depends on the domestic economy, he said, policies must therefore focus on capital, efficiency, and productivity within the domestic market.","readDurationInMinutes":"5","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["India needs reforms, efficiency for economic growth & to avoid middle-income trap.","Structural changes vital: boost manufacturing, private investment to reach 8% growth.","India counters global headwinds via trade deals, diversification & US engagement."],"tags":["IndiaEconomy","MiddleIncomeTrap","SKOCHSummit","SMahendraDev","EACPM","NITI","Aayog","EconomicGrowth","PrivateInvestment","Reforms","InclusiveGrowth","GSTReforms","RERA","IBC","FDI","Manufacturing","Agriculture","GDP","Exports","FreeTradeAgreements","USEconomy","WTO","MSMEs","AndhraPradesh","Australia"],"consent":true,"redirectionEnabled":false}

India has progressed on many fronts, it must avoid middle-income trap: PM's eco advisory panel chief

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