How India can escape the middle income trap

India’s current per capita income stands at $2,540, with upper-middle-income status still some years away. To accelerate its growth and reach high-income status, India must embrace modern technologies, new business models, and foster innovation. Traditionally, middle-income countries like India have relied heavily on investment and foreign capital, but this strategy is proving less effective. The World Bank warns that without significant change, it could take India 75 years to achieve just a quarter of the U.S. per capita income. Innovation and a new growth playbook are crucial to overcoming this challenge.



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