The World Report 2024 sheds light on the middle-income trap, a critical challenge for many emerging economies, including India. Countries transitioning from low to middle-income status often struggle to reach high-income levels due to productivity stagnation, innovation deficits, and underdeveloped infrastructure. India, now a middle-income country, faces these very obstacles.
With labor productivity slowing, insufficient investment in innovation, and educational and skill gaps, India’s progress could falter. The report emphasizes the need for India to focus on innovation-driven growth, education reform, formalizing the informal economy, and infrastructure development. Only by addressing these issues can India avoid the trap and continue its journey toward becoming a high-income economy.
The coming decades are pivotal. India’s large workforce, growing entrepreneurial spirit, and increasing global influence offer the potential to overcome these challenges, but bold structural reforms and strategic investments are crucial to ensure sustained economic growth and long-term success.