8% Annual Growth will help to India to reach $55 Trillion economy by 2047
India can become a $55 Trillion economy by the centenary of its Independence in 2047, provided it can consistently grow by 8 per cent over the next 24 years. This was mentioned by Prof. Krishnamurthy Subramanian, Executive Director – India, International Monetary Fund (IMF) and former Chief Economic Advisor, to the Government of India, a globally recognized economist, addressing the 3rd Suresh Neotia Memorial Lecture organized in Kolkata by CII Suresh Neotia Centre of Excellence for Leadership. A book titled “India@100: Building a US $55 Trillion Economy” authored by Prof. Subramanian was launched today on this occasion.
Prof. Subramanian identified three key enablers essential for sustaining this growth trajectory. First, he stressed the importance of enhancing productivity across both formal and informal sectors. He emphasized the need to increasingly formalize the informal sector while urging the formal sector to further boost its productivity to compete globally. He also noted the transformative potential of generative AI in driving economic productivity.
Innovation and entrepreneurship were highlighted as the second enabler, with a call for increased investments in R&D across all sectors. Prof. Subramanian acknowledged India's commendable rise in the Global Innovation Index, where it currently ranks 40th, while noting the potential for further improvement.
The third enabler discussed was capital credit creation. Prof. Subramanian pointed out that the private credit-to-GDP ratio, which stood at 60 percent in 2020, holds significant potential for growth.
In his lecture, Prof. Subramanian emphasized that, as a federal structure, India’s state governments will play a crucial role in realizing the ambitious goal of becoming a $55 trillion economy by 2047. Their active participation will catalyse in unlocking the nation’s full economic potential.
Prof. Subramanian emphasized India's need for agility and resilience in the global economic landscape. He provided a thorough analysis of the country's economic path, examining the impact of recent global disruptions and outlining strategic approaches for India's future growth.
The book by Prof. Krishnamurthy Subramanian, India@100: Envisioning Tomorrow’s Economic Powerhouse, explores the opportunities of India, to become a developed nation through macroeconomic emphasis on growth, microeconomic focus on social and economic inclusion, vision of ethical wealth creation and a strategy of a virtuous cycle triggered by investment.
Kolkata
21 August 2024