India risks decade of stagnation in income, quality of life if GDP doesn’t grow over 8% annually: MGI report

India’s GDP would have to grow by 8 to 8.5 per cent annually and the country would have to create jobs for 90 million workers by 2030. Else, it will risk a decade of economic stagnation, a report by the McKinsey Global Institute warns.

Over the decade to 2030, 60 million new workers are likely to enter the workforce as per current demographic trends, and an additional 30 million workers could move from farm work to more productive non-farm sectors.

For that to happen, India’s GDP needs to grow by 8 to 8.5 per cent annually over the next decade. That is double the 4.2 per cent rate of growth seen in the fiscal year 2020.

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