PHD Chamber forecasts India to be $34 trillion economy by 2047

India's thrust towards renewable energy, start-up ecosystem, digital transformation and ease of doing business in general may help the country become a $34.7 trillion economy by 2047, says industry chamber PHD Chamber of Commerce and Industry (PHDCCI).

The chamber estimates that the contribution of services to India’s GDP will be 54%, followed by industry (34%) and agriculture (12%) in 2047.  According to PHDCCI, percolating ease of doing business at factory level by reducing the cost of doing business including cost of capital, power, logistics, land, labour etc and cost of compliance will be one of the key enablers to this growth.

It identifies automobile, fast-moving consumer goods (FMCG), fintech, information technology (IT), pharmaceuticals and renewable energy as the most promising sectors where Indian companies can aspire to become global MNCs in the next couple of decades. Continued hand-holding to the startup ecosystem to see India becoming the 2nd largest startup ecosystem in the World by 2030 and a special focus to the development of semiconductor industry will help, it says. 

The Viksit Bharat@2047 report brought out by the chamber identified 75 products that can help India improve its export performance in the coming years. Reform measures for agriculture and food processing sector, push to digital transformation and enhance the renewable energy installed capacity to 1500 GW by 2047 were other targets set. "A key area of focus must be on filling the vacant positions at the National and State levels, including Judiciary, Police, Medical and Para-medicals, Military and paramilitary and education among others. Physical infrastructure including road, rail, port, airport, education institutions and hospitals should be focused along with targeted annual outcomes," says Sanjeev Agrawal, president, PHDCCI.

According to Agrawal, the share of manufacturing in GDP will be 25% by 2047. “At a disaggregated level, each sector of the India's economy will grow. We have identified ten key enablers that are leading the economy to Viksit Bharat by 2047," says Agrawal.

The chamber also notes that the Indian economy is displaying robust growth post Covid pandemic despite continued global headwinds and the 10 key enablers identified by them in the report will help the country become a developed economy by 2047.