India’s economy is poised to grow to $30 trillion by 2050, with per capita income soaring to $21,000, HDFC Bank chairman Atanu Chakraborty predicted.
Chakraborty, a former economic affairs secretary, spoke at an event in New Delhi on October 11. He said that the Indian economy is currently the world’s fifth largest, with a size of $3.75 trillion and per capita income of around $1,183.
Global financial institutions are forecasting around 6.3 percent growth for India this year, with inflation at about 6 percent. This would put nominal GDP growth at around 10-12 percent. Chakraborty said that if this pace continues for a few years, it will make India a $30 trillion economy by 2045-50 with per capita income of $21,000.
The Reserve Bank of India (RBI) has said that the Indian economy is on the path to hit the $5 trillion mark in 2027, aided by financial sector development and strong demographic advantage.
Barclays Plc has suggested that India requires to grow at around 8 percent annually for a sustainable period to oust China as the global economic driver. For growing at this speed, the country needs investment in areas such as mining, utilities, storage and transport.
The International Monetary Fund (IMF) has raised the FY24 growth forecast for India from 6.1 percent to 6.3 percent, citing the “stronger-than-expected consumption during April-June”.
The World Bank and Asian Development Bank (ADB) have also predicted India to grow at 6.3 percent in the forecast released last month.