India aims to become a $30 trillion economy by 2047: India Ratings

Path to becoming a $30 trn economy: India is aiming to lead the pack among G20 developing nations with a target of achieving a robust $30 trillion economy by 2047, according to India Ratings and Research (Ind-Ra). As the economy gears up to touch $3.6 trillion in FY24, this ambitious goal relies on multiple factors such as real GDP growth, inflation dynamics, and currency exchange rates.

Sunil Kumar Sinha, Senior Director and Principal Economist at Ind-Ra, suggested that India could reach the upper-middle-income bracket and hit the $15 trillion milestone by FY47. "Under different scenarios, we anticipate India's economy to vault into the upper-middle-income category over FY33–FY36, eventually surging to a $15 trillion mark by FY43-FY47," Sinha said. 

India's trajectory towards the $30 trillion target is driven by a crucial energy transition and a shift towards low-carbon manufacturing. The country's commitment to renewable energy, epitomised by ambitious targets like 500GW of renewable energy capacity by 2030 and a net-zero status by 2070, is poised to unlock growth avenues in the renewable energy sector. The shift towards low-carbon manufacturing and exports is anticipated to emerge as a significant catalyst for economic expansion.

Ind-Ra highlights the middle-income class as one of the most crucial drivers of India's economic ascent. With projections indicating a substantial expansion to 1.02 billion by 2046-47, the evolving consumption patterns and investment preferences of this demographic cohort are expected to shape India's economic growth significantly.

According to the report, India's per capita income is poised for a substantial rise, estimated to reach $9,218 to $9,920 by FY47.