EY: India to Become 26 Trillion Economy by 2047

According to EY, India‘s GDP will reach $26 trillion at market rates of exchange by 2047–2048 and its per capita income will surpass $15,000, placing the country among the developed economies.

Ernst and Young Report

In a report issued, EY stated that even with a consistent but slow rate of growth of 6% annually, India would have a nominal GDP of $26 trillion by 2047–2048 and a per capita income that was six times more than it is today. The report observed that due to the recent acceleration of market reforms in the areas of physical, digital, fiscal infrastructure, and social inclusivity, India is now better positioned for greater and more sustained growth.

With a relatively fixed employment market, the biggest, widest, and cheapest pool of workers, and these factors combined, there is a long runway for increased productivity that is outpacing wage increases. This increases the ability of Indian businesses to compete globally. The export of services, which increased by 14% during the previous 20 years to $254.5 billion in 2021–2022, is one of the most important facilitators.

Exports of services account for a sizable portion. Digitalization is a facilitator as well. The 1.2 billion telecom subscribers and 837 million internet users, along with the government’s emphasis on creating online platforms, have laid the groundwork for digitalization, made it possible to create a strong environment for digital payments, and improved governance.

N Chandrasekaran, Chairman Tata Sons’ Take on EY’s Statement

Indians are well prepared to leverage embracing digital to reimagine our national plan, according to N Chandrasekaran, Chairman of Tata Sons, who penned the preface. We can solve structural issues that already have kept us back for years if we are using technology properly and prioritizing our people.

N Chandrasekaran also pointed out that India had already led the globe in reinventing work practices during the switch from hardware to software. We may once again take the lead as the growing digital revolution continues to alter conventional methods of doing things.