By 2047, when it celebrates 100 years of independence, India will become a USD 55 trillion economy, according to International Monetary Fund Managing Director Krishnamurthy Subramanian. A news package about it.
Finally India was a great economy in the 13th-14th century. In every century until 1750, India accounted for at least one-third of the world’s GDP.
By following the socialist model from 1947 to 1991, India lagged behind the East Asian economies, while South Korea and Singapore all developed. Now under the leadership of Prime Minister Modi, India is emerging as the third largest economy in the world.
Krishnamurthy Subramanian, who served as India’s 17th Chief Economic Adviser, has been the Managing Director of the International Monetary Fund. Recently, he authored the book India @100: Looking ahead to tomorrow’s economic powerhouse.
In that book, he recorded his vision for the economic development of the country. He said that India will become a USD 55 trillion economy by 2047.
From 1970 to 1995, there were significant challenges such as the Vietnam War, crude oil problems, and high inflation. However, Japan’s economy grew almost 25 times. Similarly, China’s economy grew 22 times from 1996 to 2021. Compared to Japan and China, India can definitely grow 15 times from a USD 3.3 trillion economy to a USD 55 trillion economy, says Krishnamurthy Subramanian.
India’s inflation has gradually declined from 7.5 per cent to 5 per cent since 2016 and is likely to come down to around 1 per cent in the future, he said.
This means that India’s GDP doubles every six years. According to this, India will be a USD 55 trillion economy by 2047.
Acknowledging that achieving this goal will require sustained efforts across multiple sectors, Krishnamurthy Subramanian emphasized that improving productivity in the formal sector is essential.
In the last 10 years, 12.5 crore jobs have been created in India. Also, 35 percent of GDP should be maintained as investment.
Since 2014, India has emerged as the third largest entrepreneurship ecosystem globally. In 2014, India was ranked 85th in the global innovation rankings. This year, India has moved up to the 39th position in the innovation rankings.
Similarly, India was ranked 140th in ease of doing business 10 years ago. This year, it has advanced to 60th place. These are clear indicators of significant growth in the Indian economy. Growth in investment and productivity is the real economic growth of a country.
Krishnamurthy Subramanian, predicting that India’s tremendous growth will provide wonderful opportunities for American investors, has mentioned that India now has the opportunity to increase their money by 15 to 20 times. He also pointed out that no other economy is going to provide such returns in the next 20 years.
With a 12 percent growth in dollars in the US, salary hikes would be around 18 percent growth in India. That is, the salary doubles every five years. In short, salary growth in India will be much higher than expected in the US. Therefore, Krishnamurthy Subramanian has urged expatriate Indians to save money in Indian bank accounts.
Practicing the country’s public digital infrastructure and inclusive growth model, Krishnamurthy Subramanian said India’s economic future is bright.
