India's Economic Potential: USD 55 Trillion by 2047

Executive Director at the IMF, Krishnamurthy Subramanian, stated that the Indian economy could reach USD 55 trillion by 2047 with a 12% growth rate in dollar terms. He emphasized the impact of inflation targeting, formalization, entrepreneurship, and innovation on the potential sustained growth of the economy.

The Executive Director at the International Monetary Fund (IMF), Krishnamurthy Subramanian, projected a substantial growth for the Indian economy, suggesting it could reach USD 55 trillion by 2047 if the growth rate in dollar terms maintains at 12 per cent. Speaking at a CII event, he highlighted India's potential.

Subramanian, who served as the chief economic advisor from 2018 to 2021, underscored the importance of inflation targeting adopted since 2016, which helped stabilize the inflation rate at five per cent compared to the previous average of 7.5 per cent. He projected a real growth rate of eight per cent, with nominal growth hitting 13 per cent, factoring in a five per cent inflation rate.

He noted the advantageous fundamentals of the Indian economy, emphasizing the minimal depreciation rate of the Indian currency against the dollar in the long run. The economist highlighted formalization, productivity improvement, entrepreneurship, innovation, and private credit creation as crucial factors driving India's potential sustained growth of eight per cent in real terms.

(With inputs from agencies.)