Hyderabad. India can become an economy of 55 trillion USD by 2047. For this, the Center and the states will have to take the growth rate to 8 percent by implementing the necessary policies. International Monetary Fund (IMF) Executive Director Krishnamurthy V Subramanian said on Monday, this target may seem audacious, but it is possible to achieve it through the power of compounding. Subramanian said at a program organized to unveil his book ‘India at 100’, the country’s private debt and GDP ratio was 58 percent in 2020. It is about six decades behind advanced economies and these countries are now at 200 percent. However, unprecedented work is being done in the field of financial inclusion through schemes like Pradhan Mantri Jan Dhan.
The target will be achieved by the rule of 72
Subramanian, who has been the Chief Economic Advisor to the Government of India, said, my belief is based on the ‘Rule of 72’. According to this, at a growth rate of 12 per cent in dollar terms (8 per cent GDP growth and 5 per cent inflation followed by one per cent depreciation of rupee against dollar), GDP doubles every six years.
Subramanian said, the $3.25 trillion economy will ‘double four times’ in the next 24 years from 2023. This will take it to $52 trillion by 2047.
Example of Japan
The senior IMF official gave the example of Japan and said that its economy was worth $215 billion in 1970, which grew 25 times in 25 years to reach $5.1 trillion in 1995. During this period, Japan’s per capita income also increased from $2,100 to $44,000.
