Business News

India Will See 6-Fold Rise In Per Capita GDP, Economy To Hit $26 Trillion By 2047: EY

January 19, 2023
Bharat Times

Indian economy will reach a GDP size of $26 trillion (in market exchange terms) by 2047, the 100th year of the country’s independence, according to a forecast by EY.

The leading accounting firm’s report also said that India will witness a sixfold increase in its per capita GDP that would cross $15,000 by 2047, putting the country among the ranks of developed economies.

The report, India@100: Realizing the potential of a $26 trillion economy, was launched by Union railway minister Ashwini Vaishnaw on the sidelines of the World Economic Forum in Davos, Switzerland.

“In line with Prime Minister Narendra Modi’s vision, India has commenced its journey into ‘Amrit Kaal’, a uniquely auspicious period, representing India’s opportunity to herald a new world era. There is an unparalleled impetus on developing world-class infrastructure supported by growth and investment-oriented policies and reforms to establish India as a manufacturing and technology hub,” Vaishnaw said.

“Over the next decade, India will not only be the fastest growing economy but will also play an integral role in leading the world into a sustainable future,” he added.

The report underscores the growth trajectory of the Indian economy which is projected to be the highest for any large economy over the coming decades. It also cites key enablers that will underpin the country’s development over the next 25 years that will unleash business opportunities across sectors and will significantly enhance India’s global competitiveness.

The report recommends ensuring macroeconomic stability and resilience and continued thrust on reforms, which will be especially relevant in the backdrop of ongoing geo-political conflicts, inflationary pressures, and slowing global growth.

Using International Monetary Fund’s (IMF) medium-term projections and Organization for Economic Co-operation and Development (OECD)’s long-term forecasts, EY has made projections under alternative assumptions covering the period FY23 to FY61.

For the period FY23 to FY28, IMF’s projections pertaining to India’s real and nominal GDP growth as well as its nominal savings rate have been used. With India’s real GDP growth forecasted to average 6.5 per cent during this five-year period, it is expected to be moderately affected by global economic events as compared to the rest of the world.

The long-term projections beyond FY28 are based on the OECD’s methodology with suitable modifications made with respect to India’s growth profile, the report said.