A developed country is generally characterized by its industrialization level, quality of life, economic advancement, and sophisticated technological infrastructure. These features set it apart from less industrialized or developing nations, which are either in the process of industrialization or are pre-industrial and predominantly agrarian.
Developed country status is usually determined by several key economic indicators. These include Gross Domestic Product (GDP) – a monetary measure of all goods and services produced in a country within a year, Per Capita Income – the amount of money earned per person, domination of tertiary and quaternary sectors, and the Human Development Index (HDI). For India, increasing the per capita income and economic prosperity are crucial steps towards becoming a developed country.
Understanding the Definition of a Developed Country
A universally agreed-upon definition of a ‘developed country’ doesn’t exist. Various international agencies such as the United Nations, World Bank, World Trade Organization, and World Economic Forum utilize different indicators to categorize countries as ‘developed’ or ‘developing.’ For instance, the United Nations classifies countries into low, lower-middle, upper-middle, and high-income categories, based on their gross national income (GNI) per capita.
The Controversy Surrounding UN’s Classification
The UN’s classification method is often challenged for its limited analytical value. It categorizes only three countries – the US, the UK, and Norway as ‘developed,’ despite there being at least 31 developed nations worldwide. The rest, barring 17 countries considered ‘economies in transition,’ are labeled as ‘developing.’ This categorization sometimes leads to incorrect labeling, as seen in the case of China and Ukraine.
India’s Current Position
Currently, India lags significantly behind both developed and certain developing nations. Despite being the sixth-largest economy in terms of GDP, India’s per capita income is lower than that of Bangladesh. In comparison to China and the UK, India’s per capita income is 5.5 times and 33 times lower respectively. However, on the Human Development Index (HDI), India has made commendable progress.
India’s Economic Challenges
Despite being the world’s third-largest economy in purchasing power parity terms, most Indians are still relatively poor compared to people in other middle-income or rich countries. According to a World Bank report in 2018, at most, only 10% of Indians have consumption levels above the global middle-class threshold of USD 10 (PPP) per day.
India’s Path to Becoming a Developed Country by 2047
The World Bank, in its 2018 report, suggested that by 2047 – the centenary year of its independence – at least half of India’s citizens could join the global middle class. This entails access to better education, healthcare, clean water, improved sanitation, reliable electricity, safe environments, affordable housing, and sufficient discretionary income for leisure pursuits.
India’s Achievements Since Independence
Since its independence, India has made significant strides in many areas. India’s GDP rose substantially from Rs 2.79 lakh crore in 1950-51 to an estimated Rs 147.36 lakh crore in 2021-22. Also, it is expected to become the world’s fifth-largest economy in 2022. Additionally, other impressive achievements include a rise in forex reserves, increase in food grain production, and dramatic improvement in literacy rates.
While these developments indicate positive trends, the path to becoming a developed country requires holistic growth and improvements across all sectors, with particular attention to reducing disparities in per capita income and enhancing the overall quality of life.
