New Delhi: There's no reason for celebrating the vision to become the third largest economy in the world by 2029, as India may still be a poor country, former Reserve Bank Governor D. Subbarao has said.

Subbarao cited Saudi Arabia, saying that becoming a rich country does not necessarily mean becoming a developed nation.

“In my view, that is possible (India becoming the third-largest economy), but it's not a celebration. Why? We are a large economy because we are 1.40 billion people. And people are a factor of production. So we are a large economy because we have people. But we are still a poor country,” Subbarao said, according to news agency PTI.

India is the fifth largest economy with a GDP of $3.7 trillion (estimate FY24), according to the finance ministry.

With a per capita income of $2,600, India is in the 139th position in the league of Nations in terms of per capita income. And the poorest among BRICS and G-20 nations, he said.

So, the agenda for moving forward is quite clear. Accelerate the growth rate and ensure that the benefits are going to be shared, he added.

While the prime minister articulated a vision for India to achieve developed status by 2047, Subbarao underscored the necessity of four critical elements – rule of law, strong state, accountability, and independent institutions – to realise this aspiration.

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