Washington: Of the belief that India is headed to be a USD 55 trillion economy by 2047, India’s Executive Director at the IMF Dr K V Subramanian on Thursday said India’s growth offers phenomenal opportunities to American investors.
Subramanian said this during the launch of his latest book “India@100: Envisioning Tomorrow’s Economic Powerhouse”.
“The opportunities that are available for the American investors actually are phenomenal…., I don’t think there is any other economy that is actually going to be providing this kind of return over the next 20 to 25 years,” he said at the launch event organised by US India Strategic and Partnership Forum (USISPF) here.
Investors who have an eye on India have the “opportunity to actually not double but triple their money”, the top economist said.
“They have the opportunity to grow their money … 15 to 20 times, I think that is something that is important,” said Subramanian, who previously was India’s Chief Economic Advisor.
In his book, Subramanian explores how India has the potential to become a USD 55 trillion economy in less than 25 years when India celebrates its 100th Independence Day in 2047 by reforming the economy zealously and by doubling down on the sound policies implemented post-2014.
Subramanian urged the large Indian Diaspora to save money in Indian bank accounts as it gives a much bigger rate of return than that they could have in a US bank.
In addition, the salary growth in India is going to be much higher than what they can expect in the United States, he said.
“With a 12 per cent rate of growth in nominal dollars, salary rises are actually, you’re looking at around 17 to 18 per cent growth in India, which means that salaries will double every five years at least. And over a maybe 30-year career, you’re looking at seven to eight doublings,” Subramanian said.
“That’s basically 100 times. Do the comparatives basically for the US, salaries will double maybe maximum seven-eight times,” he said, adding that there are “immense opportunities” for the diaspora in India.
“Of course, one has to also bring in dimensions of quality of life and those are areas where India has to work on something,” he said.
Responding to questions, Subramanian exuded confidence that the Indian economy will comfortably hit the USD 55 trillion figure by 2047 when the country celebrates its 100th anniversary.
“The Indian economy is just a little bit shy of USD 4 trillion right now. It makes it the fifth largest economy in the world after the United States, China, Germany, and Japan. By the end of this decade, given the growth rates in India, India will probably surpass Japan and Germany to be the third largest economy in the world,” he said.
Subramanian’s projection of the Indian economy to be USD 55 trillion by 2047 is different from most projections which put it in the range of 25 to 30 trillion by 2047.
