WASHINGTON, Dec 6: Dr. K V Subramanian, India’s Executive Director at the IMF, expressed his belief that India is on track to become a USD 55 trillion economy by 2047. He emphasized the tremendous investment opportunities available for American investors during the launch of his new book, “India@100: Envisioning Tomorrow’s Economic Powerhouse.”
Subramanian stated, “The chances for American investors are remarkable… no other economy is likely to offer these kinds of returns over the next 20 to 25 years.” This comment was made at an event organized by the U.S.-India Strategic and Partnership Forum (USISPF).
He highlighted that investors focusing on India have the potential to not just double but possibly triple their investments, noting opportunities for growth that could increase their capital by 15 to 20 times. Previously, Subramanian served as India’s Chief Economic Advisor.
In his book, he analyzes how India can attain the USD 55 trillion mark within 25 years, coinciding with its 100th Independence Day in 2047, by implementing rigorous economic reforms and reinforcing solid policies established post-2014.
He encouraged the large Indian diaspora to consider saving in Indian bank accounts, which provide significantly better returns than those available in U.S. banks. He also noted that salary growth in India is expected to surpass that in the United States.
“With a nominal growth rate of 12%, salary increases in India could reach about 17 to 18%, meaning salaries could potentially double every five years—leading to seven to eight doublings over a 30-year career,” Subramanian explained. “That equates to a hundredfold increase, while U.S. salaries would likely only double seven to eight times.” He pointed out the vast opportunities for the diaspora in India, albeit with the caveat that improvements in quality of life are still necessary.
Responding to inquiries, Subramanian expressed confidence that India’s economy will seamlessly reach the USD 55 trillion milestone by 2047 during the nation’s centenary celebrations. He noted that the Indian economy is currently just under USD 4 trillion, making it the fifth largest globally, following the United States, China, Germany, and Japan. He predicted that by the end of this decade, India would likely surpass Japan and Germany to become the third-largest economy.
Subramanian’s forecast of a USD 55 trillion economy by 2047 stands in contrast to many other projections, which estimate it will be around USD 25 to 30 trillion by then. (PTI)
