India may reach a $55 trillion economy by 2047: Krishnamurthy Subramanian.

India is set to achieve the feat of become 55 Trillion dollars economy by the year 2047 that will be 100 years of independence. Such a massive number, stated by Krishnamurthy Subramanian, India’s former Chief Economic Adviser can be achieved when the country sustains high economic growth coupled with addressing the matter of inflation and controlling it.

For this purpose, there is a need of sustaining an average annual GDP growth of 7-8 % in India. This growth rate is critical in developing the economy to almost sixteen times its current value of $3.5 trillion. Combined with another figure – a relatively low and sustainable inflation rate of 4-5 % this would mean a proper nominal GDP growth rate of 11-13 % per year, which is needed to achieve $ 55 trillion.

Specific priorities include building on the digital and technology front which continue to receives continued support in things like artificial intelligence, financial technologies, and renewable energy among others. Also, there will be a need to embark on infrastructure construction especially in the transport and energy sectors to support industrial and services growth. Same to that is training, which focuses on the human capital that is the young and growing working population to produce efficiency.

However, areas like income disparity, environment, and global economy as a flip side also needs to be discussed. The challenges that will have to be addresses include: The first is the issue of inclusive growth and the second one is the issues of strong governance frameworks.

If India succeeds in synchronizing all these factors, it is on track to become one of the world’s most dominant economies in 2047 that will bolster its standing in the international system and been a historic shift in the country’s economy.