India: A $25 trillion economy by 2047
==========
Indian plans to reach US$ 25 to 35 trillion by 2047, at its 100th year of independence. The GDP and growth (2022-23) are US$ 3.3 trillion and 10.9% at current prices. If the depreciation of rupee is assumed at 2% per annum until 2046-47, the current rate of growth will reach GDP of US$ 25 trillion. At 4.2% depreciation the required GDP growth is 13.2%. Under all scenarios, the structure of the economy needs a change. The rate of gross capital formation (GCF) relative to GDP averaged 34 per cent during 2011-12 to 2022-23. Neither agriculture growth nor the labour employed in it can be sustained. Employment in manufacturing is under 12% of the workforce. A redeeming fact is TFP contributed 45% of the total growth post covid from 15% during 1981-2017. With an ICOR of close to 6.5 in the non-agriculture sector, a 7% growth would also require investment of more than 40% of GDP. Household enterprises and MSMEs are important not only because they account for over 40% of GDP, but they are also the key labour absorbers. Currently one third of the population in the age group 15-29 are neither in education, training, or employment (NEET).
#India #Economy #Gdp #Growth #Investment
https://www.businesstoday.in/latest/economy/story/india-a-25-trillion-economy-by-2047-433143-2024-06-13
Business Today /
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2024-06-13 08:36:12
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npub10krv5xyz57fwv0upm7fgx90w8m2xulqkzzxml2d9d433rwrlmwpsyffpj8Published at
2024-06-13 08:36:12Event JSON
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"content": "India: A $25 trillion economy by 2047\n==========\n\nIndian plans to reach US$ 25 to 35 trillion by 2047, at its 100th year of independence. The GDP and growth (2022-23) are US$ 3.3 trillion and 10.9% at current prices. If the depreciation of rupee is assumed at 2% per annum until 2046-47, the current rate of growth will reach GDP of US$ 25 trillion. At 4.2% depreciation the required GDP growth is 13.2%. Under all scenarios, the structure of the economy needs a change. The rate of gross capital formation (GCF) relative to GDP averaged 34 per cent during 2011-12 to 2022-23. Neither agriculture growth nor the labour employed in it can be sustained. Employment in manufacturing is under 12% of the workforce. A redeeming fact is TFP contributed 45% of the total growth post covid from 15% during 1981-2017. With an ICOR of close to 6.5 in the non-agriculture sector, a 7% growth would also require investment of more than 40% of GDP. Household enterprises and MSMEs are important not only because they account for over 40% of GDP, but they are also the key labour absorbers. Currently one third of the population in the age group 15-29 are neither in education, training, or employment (NEET).\n\n#India #Economy #Gdp #Growth #Investment\n\nhttps://www.businesstoday.in/latest/economy/story/india-a-25-trillion-economy-by-2047-433143-2024-06-13",
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