New Delhi, Feb 28 (Reporter) India needs to grow by 7.8% on average over the next 22 years to become a developed country by 2047, World Bank said in a report on Friday. The report noted that India’s past achievements provide the foundation for its future ambitions. "Getting there however would require reforms and their implementation to be as ambitious as the target itself," said the new India Country Economic Memorandum titled ‘Becoming a High-Income Economy in a Generation. Auguste Tano Kouame, World Bank Country Director said that India can chart its own path by stepping up the pace of reforms and building on its past achievements. “Lessons from countries like Chile, Korea and Poland show how they have successfully made the transition from middle- to high-income countries by deepening their integration into the global economy,” he said. The report evaluated three scenarios for India’s growth trajectory over the next 22 years. The scenario which enables India to reach high-income status in a generation requires achieving faster and inclusive growth across states, increasing total investment from current 33.5% of GDP to 40% (both in real terms) by 2035, increasing overall labour force participation from 56.4% to above 65% and accelerating overall productivity growth. The report stated that in the past three fiscal years India has accelerated its average growth rate to 7.2%. It suggested key critical areas for further policy action in order to attain an average growth rate of 7.8% over the next two decades. Among various recommendations, the World Bank report called for actions such as strengthening financial sector regulations, removing constraints to formal credit for micro, small, and medium enterprises (MSMEs), and simplifying foreign direct investment (FDI) policies. It has recommended incentivizing the private sector to invest in job-rich sectors like agro-processing manufacturing, hospitality, transportation, and care economy. The report has called for promoting structural transformation, trade participation and technology adoption. The report argues for a differentiated policy approach whereby less developed states could focus on strengthening the fundamentals of growth (health, education, infrastructure, etc), while more developed states could prioritize the next generation of reforms (better business environment, deeper participation in GVCs, etc). "The center can facilitate this growth process through more incentive-driven federal programs such as the recently announced Urban Challenge Fund to support better performance in lagging districts and states. More incentives and capacity building will help low-income states improve efficiency of public expenditure and enable them to catch up with the leaders," it said...////...