India can become a $20 trillion economy by 2047: PMEAC chair Bibek Debroy

Prime Minister Narendra Modi has set an ambitious target of making India a developed nation by 2047

Weeks after Prime Minister Narendra Modi set an ambitious target of making India a developed economy by 2047, the chairman of his advisory council Bibek Debroy today said the country can be a $20 trillion economy in 25 years if it continues to grow at 7.5 per cent.

Debroy said this while releasing The Competitiveness Roadmap for India @100, which envisions setting new guiding principles for the country’s growth journey over the following years and guiding different states, ministries and partners in India’s growth tp develop sector-specific roadmaps for achieving targeted goals.

“This roadmap will guide India to become a high-income country by 2047 through sector-specific and region-specific policies.

India currently is the globe’s sixth largest economy with a GDP of $2.7 trillion.

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“Even if you have relatively conservative rate of growth of 7-7.5 per cent, we will get a per capita income of about $10,000… And you get a total size of economy of a little less than $20 trillion by 2047, Debroy said.

He, however, said that states will have to be the growth drivers for India to achieve the goal of being a $20 trillion economy.

“What happens to India is an aggregate of what happens to states….,” he said.

According to the International Monetary Fund’s (IMF) projections, India’s economy is expected to grow 7.4 per cent in 2022-23.

Debroy’s comments come a day ahead of the release of April-June (2022-23) quarter economic growth numbers which are likely to be three-quarter high due to an escalation in domestic demand post the pandemic and a law base of last year.

“If India’s development trajectory has to emerge faster, higher and stronger, both the government policies and the enterprises and market functioning in the environment set by the former, are of great significance,” he said.