Investments, human capital formation, and productivity Growth: Targeting Viksit Bharat
By: Maiti, Dibyendu and Goldar, BIshwanath
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Material type: 
BookPublisher: Economic & Political Weekly Description: 60(46), Nov 15, 2025: p.55-62.
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Economic & Political WeeklySummary: Using a series of simulations, this paper shows the increases in investment rate, human capital formation and productivity growth required to enable India’s targeted transition to a high-income country by 2047. A Cobb–Douglas specification of the aggregate level production function is used to calibrate India’s long-run growth transition. We show that to realise the vision of Viksit Bharat by 2047, the investment rate needs to go up from 33% to 40%, the human capital formation, measured in terms of years of schooling and return to education, should increase from 1.10% to at least 2.50%, and the annual total factor productivity growth rate should go up from 1.30% to 3.00%. Since these are complementary, improvements in one of them alone will not be sufficient to achieve the target.- Reproduced
https://www.epw.in/journal/2025/46/special-articles/investments-human-capital-formation-and.html
Using a series of simulations, this paper shows the increases in investment rate, human capital formation and productivity growth required to enable India’s targeted transition to a high-income country by 2047. A Cobb–Douglas specification of the aggregate level production function is used to calibrate India’s long-run growth transition. We show that to realise the vision of Viksit Bharat by 2047, the investment rate needs to go up from 33% to 40%, the human capital formation, measured in terms of years of schooling and return to education, should increase from 1.10% to at least 2.50%, and the annual total factor productivity growth rate should go up from 1.30% to 3.00%. Since these are complementary, improvements in one of them alone will not be sufficient to achieve the target.- Reproduced
https://www.epw.in/journal/2025/46/special-articles/investments-human-capital-formation-and.html
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