KV Subramanian Predicts India to Become a USD 55 Trillion Economy by 2047
New Delhi, India – KV Subramanian, the Executive Director of the International Monetary Fund (IMF) and former Chief Economic Advisor of India, has made a bold prediction. He believes that India could become a USD 55 trillion economy by 2047 if it maintains an 8% annual growth rate.
In an interview, Subramanian stated, “I’m predicting India to become a USD 55 trillion economy if it can grow at 8% per annum from now until 2047 when we celebrate the 100th year of independence.”
He acknowledged that this goal is ambitious compared to other forecasts, such as Ernst & Young’s prediction of USD 26 trillion for 2047 or Goldman Sachs’ estimate of USD 50 trillion by 2075. However, he explained that with controlled inflation and lower currency depreciation, India’s GDP could double every six years, reaching the ambitious target.
Subramanian elaborated, “GDP will double every six years in dollar terms when we grow at 8%. Therefore, if you look at the 24 years from 2023 to 2047, doubling every six years translates into four doublings. India’s GDP in 2023 was 3.28 trillion. So four doublings mean 3.25 to 6.5, 6.5 to 13, 13 to 26, and 26 to 52. I’ve given you an approximate number just close to the 55 trillion estimate.”
He also mentioned that by 2047, India’s per capita income could be USD 40,000, making it the third-largest economy after the U.S. and China. Subramanian emphasized that with 8% growth and controlled inflation, India can achieve this goal.
Doubts Revealed
KV Subramanian -: KV Subramanian is an important person who works with money and the economy. He used to help the Indian government with economic decisions and now works for the IMF, which helps countries with their finances.
IMF -: IMF stands for International Monetary Fund. It is an organization that helps countries manage their money and economy better.
USD 55 Trillion Economy -: This means that the total value of all goods and services produced in India could be worth 55 trillion US dollars by the year 2047.
8% annual growth rate -: This means that every year, the amount of goods and services produced in India would increase by 8%. It’s like getting 8% more of something every year.
Inflation -: Inflation is when the prices of things go up over time. If inflation is controlled, it means prices don’t go up too fast.
Currency depreciation -: Currency depreciation means that the value of India’s money (the Rupee) goes down compared to other countries’ money. Lower depreciation means the Rupee keeps its value better.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year.
Per capita income -: Per capita income is the average amount of money each person in a country earns in a year. If it is USD 40,000, it means on average, each person in India could earn 40,000 US dollars a year by 2047.
Third-largest economy -: This means that by 2047, India could be the third biggest country in the world in terms of the total value of goods and services it produces, after the United States and China.
