India must avoid the middle-income trap, S. Mahendra Dev, chairman of the economic advisory council to the Prime Minister (EAC-PM), cautioned on Saturday. The middle-income trap is when a nation’s growth stagnates, preventing the transition to high-income status. “Manufacturing employs 11-12 per cent for a 17 per cent GDP share. Pointing out that the economic survey suggests 8 per cent growth is required for developed-economy status, he noted two benchmarks — NITI Aayog suggests a per capita income of $18,000, while others argue $14,000 may suffice. “Therefore, 7-8 per cent growth could be adequate,” he said.

Source: The Telegraph January 11, 2026 02:19 UTC