India's Economic Growth Potential: $55 Trillion Economy by 2047 | Hyderabad News - Times of India

Hyderabad: As long as India is able to clock a GDP growth rate of 8% per annum in real terms, it has the potential to emerge as the Sachin Tendulkar of the global economy with a $55 trillion economy by 2047, International Monetary Fund (IMF) executive director prof Krishnamurthy Subramanian said on Monday. Subramanian, who was also the 17th chief economic advisor to the Indian govt, said if India maintains an 8% real growth rate, coupled with a 5% inflation rate, the nominal growth rate in Rupee terms would be 13%. Factoring in an estimated 1% depreciation in the Rupee against the US Dollar, the nominal growth rate in Dollar terms would be approximately 12%, he said. Applying the rule of 72, which states that the number of years required to double a given amount is equal to 72 divided by the growth rate, India's GDP would double every six years at a 12% growth rate, he said at the unveiling of his book 'India@100 Envisioning Tomorrow's Economic Powerhouse' at the Indian School of Business (ISB) here. He said starting from a GDP of $3.25 trillion in 2023, India's economy would undergo four doublings over the 24-year period from 2023 to 2047, reaching $52 trillion by the time the country celebrates the 100th anniversary of its independence. While admitting that this goal may sound audacious, he said it was achievable through the power of compounding and India's historical growth rate of around 7% over the past 30 years. "It's ambitious but achievable if we double down and work hard and overcome setbacks that will inevitably come during a 20-25 year period," he said.