India’s Economic Aspirations by 2047
India currently stands as the fifth-largest economy in the world and is projected to reach the third position in the near future. Prime Minister Narendra Modi has set an ambitious goal of transforming India into a developed nation by the year 2047. Recently, the International Monetary Fund (IMF) Executive Director, Krishnamurthy Subramanian, made a significant claim regarding the future of the Indian economy. He stated that by 2047, India could potentially achieve a staggering economy of $55 trillion, provided that it maintains a growth rate of 12% in dollar terms.
Insights from the IMF Executive Director
Subramanian presented these insights during an event in Kolkata. He emphasized that since 2016, the establishment of an inflation target has contributed to lowering the average inflation rate to around 5%. Prior to 2016, the average inflation was at a worrying 7.5%. If India can maintain a real growth rate of 8% alongside inflation at 5%, a market value growth rate of approximately 13% is expected.
Doubling the Economy Every Six Years
Drawing from his experience as Chief Economic Advisor to the Indian Government from 2018 to 2021, Subramanian highlighted that a real growth rate of 12% would enable the economy to double in size every six years. Currently, the Indian economy is valued at $3.8 trillion. He expressed confidence that achieving an 8% growth rate is indeed feasible for India. As of now, the United States, China, Germany, and Japan occupy the top four spots in the global economy, while India is striving to surpass them.
India’s Journey Towards Becoming the Third-Largest Economy
Prime Minister Modi has repeatedly claimed that during his third term, India will ascend to the status of the third-largest economy in the world. The economic performance of Japan has outperformed expectations in the recent second quarter, while Europe’s largest economy has yet to recover from sluggishness. In an era where India is recognized as the fastest-growing major economy globally, many analysts believe that it could soon surpass both Japan and Germany.
Current Economic Landscape
| Country | Current GDP (in Trillions USD) |
|---|---|
| United States | $28.783 |
| China | $18.536 |
| Germany | $4.590 |
| Japan | $4.112 |
| India | $3.942 |
Conclusion
With ambitious targets and growing confidence, India’s economic future looks promising. If the country can sustain its growth trajectory and focus on managing inflation, the vision of a $55 trillion economy by 2047 could very well become a reality. This dynamic shift not only plays a crucial role in the global economic landscape but also opens new avenues for investments and stability for millions of Indians.
