India has the potential to ascend to the position of the world’s second-largest economy by , according to Reserve Bank of India Deputy Governor Michael Patra. In a speech delivered at the Lal Bahadur Shastri National Academy of Administration in Mussoorie, Patra emphasized the country’s inherent strengths and its unwavering determination to achieve ambitious goals.
Patra highlighted that several factors are converging to propel India into a leadership role on the global economic stage over the next two to three decades. Domestic investment, traditionally driven by savings, is demonstrating signs of stabilization and acceleration, complemented by a manageable current account deficit and external debt.
The RBI official also stressed the importance of overcoming challenges such as low labor productivity, inadequate infrastructure, and a relatively small manufacturing sector contribution to GDP. Additionally, he emphasized the need for sustainable development and a green economy.
Patra expressed confidence that if India sustains a growth rate of 9.6 percent annually over the next decade, it can escape the middle-income trap and emerge as a developed economy. He further emphasized the significance of price stability for fostering long-term growth and preparing the ground for the internationalization of the rupee.