India Could Become the World’s Largest Economy by 2060

Michael Debabrata Patra, Deputy Governor of the Reserve Bank of India, Shares Insights

New Delhi [India], July 13: Michael Debabrata Patra, Deputy Governor of the Reserve Bank of India (RBI), announced that India has the potential to become the second largest economy by 2031 and the largest by 2060. He made this statement during a program at the Lal Bahadur Shastri National Academy of Administration in Mussoorie.

Patra highlighted India’s significant economic progress, noting that the country became a USD 3.6 trillion economy in the financial year 2023-24. He explained that India, with a per capita income of Rs 2,07,030 or USD 2,500, is currently in the lower middle-income group of countries.

To achieve the status of a developed economy, Patra emphasized that India needs to grow at a rate of 9.6% per annum over the next ten years. He also mentioned that the Organisation for Economic Cooperation and Development (OECD) projects India to overtake the US in purchasing power parity (PPP) terms by 2048.

Addressing inflation, Patra stated that the RBI is committed to aligning inflation with its target, projecting it to average 4.5% in 2024-25 and 4.1% in 2025-26. He also noted the reduction of Gross non-performing assets (GNPAs) in the banking system, which have fallen to 2.8% of total assets by March 2024, with net NPAs at just 0.6%.