Our GDP will reach $55,000 billion by 2047, the economy will double every 6 years

International Monetary Fund (IMF) Executive Director Krishnamurthy Subramanian said on Wednesday that the size of the Indian economy could reach $55,000 billion by 2047 if the growth rate remains at 12 percent in dollar terms. He said at a program of industry body CII that setting an inflation target since 2016 has helped in bringing the inflation rate in the country to an average of five percent. Subramanian, who was the Chief Economic Advisor from 2018 to 2021, said that before 2016 the average rate of inflation was 7.5 percent.

The size of the economy will double every 6 years

He said that if the real growth rate is eight percent and inflation remains at five percent, then the growth rate at market price is expected to be 13 percent. Subramanian said, “In the long run, the fall in the exchange rate of Indian currency against the dollar by less than one percent will have an impact on the fundamentals of the economy.” In this context, he said that India’s real growth rate in terms of dollars will be 12 percent. In such a situation, the size of the economy will double every six years. 

GDP will reach $55,000 billion in 2047

Subramanian said, “The current size of the economy is $3,800 billion. It is estimated to reach $55,000 billion in the year 2047.” He said that India can achieve a growth rate of eight percent in real terms i.e. at the base price. According to Subramanian, investment in developed economies has reached a stable state. Productivity improvement will be the only source of growth. The second reason for the eight percent growth rate in the country is the economy becoming more organized. He said that half to two-thirds of the Indian economy remains unorganized. Subramanian said, “Productivity will increase as the economy becomes more organized. But there is still scope to increase the productivity of India’s organized sector compared to other countries.”