$20 trillion economy in 25 years, Economic Advisory Council lays road map for country

Tribune News Service

New Delhi, August 30

The Economic Advisory Council to the Prime Minister (EAC-PM) on Tuesday released “The Competitiveness Road Map for India@100” which charts out a road map for India to become an upper-middle-income country by 2047, the centenary year of its Independence.

India can achieve this if it manages to achieve a sustained growth rate of 7-7.5 per cent for the next 25 years, EAC-PM Chairman Bibek Debroy said.

The country can become a $20 trillion economy by 2047 at this growth rate, he added. India, the world’s sixth largest economy with a GDP of $2.7 trillion, is currently classified as a developing nation.

“Even if you have relatively conservative real rates of growth of 7-7.5 per cent, we will get to a per capita income of about $10,000. And you will get to a total size of the economy of a little less than $20 trillion in 2047,” Debroy said, while releasing the document.

As per the World Bank, a country with a per capita annual income of over $12,000 is considered as a higher-income nation.

The road map is a collaborative endeavour between the EAC-PM and The Institute for Competitiveness with inputs from Professors Michael Porter and Christian Ketels from the Harvard Business School. “Its basic postulation is that productivity is a driver of sustained prosperity. The emphasis is not just on attaining the ambitions, but also on how the country gets there,” said Amitabh Kant, India’s G20 Sherpa.

PM Narendra Modi has set an ambitious target of making India a developed nation by 2047. Noting that because what happens to India is an aggregate of what happens to the states, Debroy said, “Unless the states jack up their growth records, the overall growth records for India is not going be that high either.”

According to the International Monetary Fund, the Indian economy is forecast to expand by 7.4% in 2022-23, making it one of the world’s fastest-growing economies. A developed country is typically characterised by a relatively high level of economic growth, a general standard of living, and higher per capita income as well as performing well on the Human Development Index (HDI).

India was classified as a “third-world” country at the time of Independence in 1947. But over the past seven decades, its GDP has grown from just Rs 2.7 lakh crore to Rs 150 lakh crore.

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