India's developed nation dream realistic, but needs bold reforms, says WB India head Auguste Tano Kouamé

While the target may seem ambitious, historical trends and planned structural reforms make it achievable, Kouamé said.

Speaking in an exclusive interview, Kouamé, who took on his current role in August 2022, said there will be years when India grows at less than 7.8%, and there will be years when it exceeds that mark.

The key to achieving this long-term goal is ensuring that periods of high growth compensate for slower years, ultimately maintaining an upward trajectory, he added.

“Yes, it is realistic and achievable," he said of India's ambition.

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"Remember that in the past 25 years, India has achieved 6.3% average growth rate despite big shocks. In the past several years, India has been the fastest growing large economy. This is a big achievement."

Last week, in its latest India Country Economic Memorandum, titledBecoming a High-Income Economy in a Generation, the World Bank had similarly noted that while India's goal of becoming a high-income economy by 2047 is achievable—given India's strong growth averaging 6.3% between 2000 and 2024—it will require reforms and their implementation to be as ambitious as the target itself.

The report added that India needed 7.8% average annual growth to become a developed nation by 2047, warning that only accelerated reforms—not a business-as-usual approach or slowdown—can bridge the gap.

Global challenges

Acknowledging that the global environment is going to be challenging in the coming years, especially with slowing growth, rising inflation, and fragmenting global economic order, Kouamé said India maintained an average growth rate of 6.3% in the last two-and-a-half decades despite facing various global and domestic economic shocks.

“Yes, the global environment is going to be challenging. But India has demonstrated resilience, achieving robust growth even when other major economies have faltered," he said.

Kouamé said India must strengthen key economic fundamentals to sustain growth, which includes raising the investment-to-GDP ratio from 33.5% to 40%, boosting public and private sector efficiency, advancing technology integration, and increasing labour force participation.

"India may need to create more jobs, particularly in high-employment sectors such as manufacturing, tourism, and green industries. This will require better skill development programmes, improved labour force participation—especially among women—and a more flexible labour market, he added.

Role of reforms and investments

Achieving sustained growth will require India to continue regulatory and structural reforms leading to more labour market flexibility, better business regulations, and an enhanced investment climate.

“Firms need easier access to land and financing, especially in manufacturing. Banks are in a good position to lend, but more could be done to facilitate credit flow to productive sectors," Kouamé said adding deregulation and streamlining bureaucratic processes are also vital.

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Citing successful models in states like Tamil Nadu, Gujarat, and Maharashtra, the World Bank official said that rapid investment approvals and business-friendly regulations have spurred private sector participation.

“In Gujarat, some firms received their business licences in a single day. This kind of efficiency should be scaled up across the country," he added.

According to the latest economic survey, India's economy is projected to grow 6.3-6.8% next fiscal and requires land, labour, and regulatory reforms to accelerate growth.

Importance of trade and technology

India’s global market integration is crucial, as international competition can drive efficiency and innovation, even with a strong domestic market, Kouamé said.

“India must make it easier for firms to export, collaborate with foreign companies, and access global technology. Strengthening foreign direct investment (FDI) policies and reducing barriers to importing critical technology and intermediate goods will be key to enhancing productivity," he added.

Lessons from other economies

Drawing parallels with other high-growth economies like South Korea, the World Bank official emphasized the importance of consistency in policymaking.

Though there are no common lessons (between India and South Korea), for sustained growth India requires persistence and an “unapologetic commitment" to economic development, even in the face of short-term setbacks, Kouamé said.

He stressed that investment in human capital should be a top priority.

“Countries that have successfully sustained high growth have prioritized high-quality education and skill development. India must do the same by aligning industry needs with educational training programs," he added.

The road ahead

The World Bank remains optimistic about India’s ability to achieve its growth ambitions, provided necessary reforms are implemented effectively.

The government’s role will be crucial in fostering an environment conducive to private sector growth while ensuring regulatory oversight and quality control.

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“There is no one-size-fits-all approach to high growth, but there are common ingredients—investment, skill development, labour market reforms, and trade facilitation. India has the foundation in place now, it needs to scale up its efforts and maintain consistency," Kouamé said.

He added that with the right mix of policy decisions and economic adjustments, India’s ambitious growth target remains within reach, though the journey will require persistent effort and adaptability in an evolving global landscape.