India's GDP nearing to $20 trillion, per capita income at $10k by 2047, says Bibek Debroy

India’s GDP will be close to USD 20 trillion by 2047 and per capita income may reach USD 10,000 (at current value of USD), Bibek Debroy, chairman, Economic visory Council to Prime Minister, said on Wednesday.

Virtually dressing inaugural session at 57th Annual Conference of Indian Econometric Society (TIES) held at University of Hyderab (UoH) here, he said though COVID-19 pandemic may have passed, still re is a lot of uncertainty around world on what is happening in China, about Russia-Ukraine conflict, growth prospects in Europe and USA.

“In 2047, India will have a per capita income of value of today’s dollars of 10,000 US Dollars. average size of GDP will be approaching close to 20 trillion US Dollars too. India, refore, will be a transformed society,” a press release from varsity quoting Debroy said.

Remarking that basic necessities have been provided to people and more so in rural areas by government, he said economic indicators after COVID have improved in India. Everyone is now looking to see rate of growth in 2023-24 and growth of economy by 2047.

According to him, India may witness volatilities in forex markets and capital markets and exchange rates due to some of uncertainties around world such as Russia- Ukraine conflict, growth prospects in Europe and USA.

“Since India is not insulated, we will also face volatility, forex markets and capital markets and exchange rates will face volatility. Inflation rates will also be impacted to some uncertainty,” he said.

Debroy opined that India needs need a simplified GST and direct tax as se are areas on which everybody should think and research that helps in making policy decisions much informed.

In order to increase India's growth rate from 7 per cent to eight per cent, lot more research needs to be done at level of States as different States are at different levels of development and hence sources of growth will also be different.

“But fact of matter is that to raise growth trajectory, we need to make land markets more efficient. Agriculture will also vastly improve when we make land markets more efficient. Similarly, we need to make labour markets and capital markets also more efficient”, he ded.