Former Reserve Bank Governor Raghuram Rajan warned that India will remain a lower middle country if the potential growth rate remains at 6% annually without any rise in population by 2047. Speaking at a programme organised by Manthan, Rajan highlighted the need for faster growth to avoid the burden of an aging population at that point. He pointed out that India’s GDP growth is currently about 6% per year and doubling every 12 years. However, at this rate, India will only be a lower middle-income country until 2047. Rajan also emphasized the low labor force participation in India, particularly among females, which is the lowest in the G20. He stated that the current pace of growth is insufficient to employ all those entering the labor force and make the country richer before it gets older. Rajan pointed to some southern states in India that are already experiencing population growth at below the reproduction rate, indicating a slowing growth rate. He compared this to developed nations, which shifted from manufacturing to services as they became richer. In these countries, the majority of the workforce is employed in the service industry. Rajan’s warnings highlight the need for India to focus on faster economic growth and increasing labor force participation to avoid the challenges of an aging population.