Summary:

According to IMF Executive Director Mr. Krishnamurthy V Subramanian, India could become a $55 trillion economy by 2047 if both state and national governments implement strategies to boost growth from 7% to 8%. Speaking at the Indian School of Business (ISB) in Hyderabad to promote his book India @100, Subramanian acknowledged that while this goal is ambitious, it is achievable. He criticized India's 58% private credit-to-GDP ratio in 2020, which is significantly lower than in advanced countries, but praised the progress in financial inclusion through programs like the Pradhan Mantri Jan-Dhan Yojana.

Subramanian emphasized that consistent 8% growth and the power of compounding could drive India to a $55 trillion GDP. Using the "rule of 72," he showed that with a 12% annual growth rate— comprising 8% GDP growth, 5% inflation, and 1% currency depreciation—India's GDP could double every six years. The current $3.25 trillion GDP is projected to reach $52 trillion by 2047 over a 24-year period starting in 2023. He cited Japan's growth from $215 billion in 1970 to $5.1 trillion in 1995, highlighting the importance of investing prudently in asset creation.

Source: IBEF 

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