India Can Hit $30 Trillion Economy Before 2047- But Only If It Clears These Tough Hurdles

National News: According to the NITI Aayog, India will have to take the size of its economy to 30 trillion (about 2500 lakh crore rupees) to achieve the target of becoming a developed nation by the year 2047. Currently, India's economy is around 4.1 trillion dollars, and by 2028 it is expected to reach $ 5 trillion. In such a situation, between 2028 and 2047, an average will have to increase by an average of more than 1 trillion, which is a major challenge.

Real vs Nominal GDP - Difference important

• There is a mention of two types of GDP in economics -
• Real (real) GDP, which is counted by adjusting inflation by considering 2011-12 as the base year.
• Nominal GDP, which is at current values ​​and inflation is not taken into consideration.

For example, in the third quarter (October-December) of FY 2024-25, India's real GDP growth rate was 6.2% and GDP size was recorded at Rs 47.17 lakh crore, compared to Rs 9.9% in the same period and GDP size was Rs 84.74 lakh crore.

How will the target of 30 trillion be possible?

NITI Aayog CEO BVR Subrahmanyam recently said that by 2028, India's economy will reach $ 5 trillion. After this, an additional increase of $ 25 trillion will have to be increased in the next 19 years. This means that India will have to record more than $ 1 trillion annually.

Nominal GDP can achieve targets

Pinaki Chakraborty, former director of the National Institute of Public Finance and Policy, says that if India's nominal growth rate remains 12%, the economy can double every six years. According to this:

• $ 4 trillion in 2024,
• 8 trillion dollars in 2030,
• 16 trillion dollars in 2036,
• 32 trillion dollars in 2042.

In this way, the target can be achieved before 2047 in nominal calculations.

Real term is more difficult

Sakshi Gupta, the chief economist of HDFC Bank, believes that if seen in real terms, India will have to maintain a growth rate of 7.5–8% continuously. It is necessary for this:

• Rapid growth in private investment,
• Increase in efficiency and productivity of workers,
• Ease of doing business improves,
• And most importantly, making India a global manufacturing hub.

Recommendations of NITI Aayog & Economic Survey

The Economic Survey of 2024-25 also underlined that India will have to maintain an average growth rate of 8% for two decades and it is necessary to increase the investment rate by 35% of GDP. Former NITI Aayog CEO Amitabh Kant believes that it will be necessary to achieve this goal:

• Simplicity in business rules,
• Make GST more logical,
• Easy availability of debt,
• Encourage research and innovation,
• And explosive development of areas like tourism should be done.