Former Chief Economic Advisor and current IMF Executive Director, KV Subramanian, predicts India could achieve a staggering $55 trillion economy by 2047 if the nation sustains an 8% annual growth rate. While this ambitious target exceeds estimates from other organizations like Ernst & Young and Goldman Sachs, Subramanian’s calculations consider factors such as post-2016 inflation targeting, reduced rupee depreciation, and the power of compounding.
He explains that maintaining an 8% real growth rate coupled with 5% inflation would result in a 12% growth rate in dollar terms. This pace would double India’s GDP every six years, leading to a fourfold increase over the 24 years to 2047. Starting from India’s $3.28 trillion GDP in 2023, this growth trajectory would propel the economy to approximately $52 trillion by 2047.
Subramanian envisions India as the world’s third-largest economy by 2047, surpassing both the US and China in per capita income, reaching $40,000. He emphasizes that consistent 8% growth and controlled inflation are crucial to achieving this ambitious economic goal.
