Can High Growth Alone Make India a Developed Nation?

India’s economy has been among the fastest growing in the world for much of the past three decades. High GDP figures project an image of progress, attracting global attention and investment. Yet, the deeper question remains: can growth alone propel India into the league of developed nations, especially over a 30-year horizon? Let’s discuss the gaps in India’s development journey and possible remedies that can transform growth into a holistic story of development.

Economic growth expands incomes, production, and consumption. However, holistic development requires that these gains translate into broad-based human well-being and institutional strength. In India, this translation remains incomplete.

The education system is still oriented towards degrees rather than employability. Skills that industry and society demand are not adequately provided, leaving many graduates unemployed or underemployed. This disconnect hampers the ability of growth to generate inclusive opportunities. India has a large demographic dividend, but without matching skill investment, it risks becoming a demographic liability.

 India’s healthcare infrastructure lags behind its demographic needs. High out-of-pocket expenditure pushes families into poverty, undermining the benefits of higher income. Life expectancy, maternal health, and nutrition indicators remain behind global peers of similar income. Public health has not received commensurate attention compared to economic reforms.

Justice delivery system suffers from delays and backlogs. Economic gains cannot fully empower citizens if access to justice remains slow and uneven. Rule of law and institutional efficiency are as critical to development as GDP growth. Delayed justice also undermines business confidence and contributes to corruption. High growth has disproportionately benefited urban centres and the middle class, while rural distress, informal work, and gender gaps persist. Rural economy remains vulnerable to climate change, farm distress, and limited non-farm opportunities.

Nations that transitioned to developed status—such as South Korea, Japan, or Singapore—did so not just through growth but by investing in education, health, innovation, and institutions. If India continues with high growth but fails to address structural deficits, thirty years later, it may have a large economy but not necessarily a “developed” society. A country can have a large GDP and yet fail in human development. For instance, despite growth, if millions remain in poor health, without quality education, or deprived of justice, the economy’s progress becomes hollow. India risks being a country of islands of prosperity amidst a sea of deprivation unless growth is consciously converted into inclusive development.

For growth to evolve into genuine development, India needs a multi-pronged strategy that addresses both human and institutional deficits.  India must shift focus from rote learning to employability, critical thinking, and vocational training aligned with industry and technological changes. Investment in teacher training, digital education tools, and regional skill hubs can bridge the learning–employment gap. Skill building must also be integrated with secondary and higher education to prevent the mismatch between demand and supply. Universal health coverage, higher public spending, and stronger primary health care systems can secure the health foundations of development. Preventive healthcare, better nutrition, and affordable access to medicine are critical to reducing health inequality. India’s spending on health must be raised significantly to match international benchmarks.  Speedier justice delivery and strengthening local governance can improve trust in institutions. Reforming the police system, addressing case backlogs, and ensuring legal aid for the underprivileged are crucial to make justice accessible. Institutional reforms, especially reducing bureaucratic red tape, will also improve the ease of doing business.

A sustained rise in expenditure on education and health—viewed not as welfare but as investment—will yield long-term dividends. An educated, skilled, and healthy population is the true driver of a developed society. India must focus on nurturing innovators, researchers, and professionals who can take the economy up the value chain. Growth cannot come at the cost of environmental degradation. Policies for renewable energy, sustainable agriculture, and urban planning will determine whether India’s growth is kind to posterity. Climate resilience in agriculture, smart cities, and green transport systems must form part of the development blueprint.

Economic growth is necessary, but not sufficient, for development. India’s challenge is to convert its growth story into a development story—where prosperity is not just widespread, but also sustainable and just. If India commits to these structural reforms, then a high growth phase over the next thirty years could indeed transform it into a developed nation. But if growth continues without strengthening human capital and institutions, the dream of development may remain elusive. The choice, therefore, is clear: growth must be the vehicle, but development must remain the destination.