If the GDP growth rate is 8% per annum, India will become a 55 trillion dollar economy by 2047: KV Subramanian

If India maintains an 8 percent annual growth rate, it can become a 55 trillion US dollar economy by 2047. Subramanian said that I am predicting that if India can grow at 8 percent per year from now till 2047 when we celebrate the 100th year of independence, it can become a 55 trillion US dollar economy.

International Monetary Fund (IMF) Executive Director and former Chief Economic Adviser to India KV Subramanian on Thursday said that if India maintains an 8 per cent annual growth rate, then India can become a 55 trillion dollar economy by 2047.

55 trillion dollar economy will be created by 2047

Speaking to news agency ANI, Subramanian said that I am predicting that if India can grow at 8 per cent per annum from now till 2047, when we celebrate the 100th year of independence, it can become a 55 trillion dollar economy. He admitted that this target seems ambitious compared to other forecasts, such as Ernst & Young's forecast of 26 trillion US dollars for 2047 or Goldman Sachs' estimate of 50 trillion US dollars by 2075.

He said if we take into account all the macroeconomic diversifications including inflation-targeting by the government since 2016, the resulting inflation has come down by at least 2 percentage points on an average. This represents a significantly smaller depreciation in the value of the rupee against the dollar and when added to the power of compounding, the forecast of US$26 trillion is an underestimate.