India is firmly on track to maintain its status as the world's fastest-growing large economy and is projected to achieve a monumental economic size of $26 trillion by the year 2047, according to a significant new report from the global professional services giant, EY. This forecast, detailed in the 'India's Century' report by EY's economic advisory team, paints a picture of sustained, high-growth momentum that will redefine the nation's global economic standing over the next quarter-century.
The Pillars of Unprecedented Growth
The EY analysis identifies several powerful, interconnected drivers that will fuel this extraordinary expansion. A central theme is the country's rapidly growing middle class, which is expected to swell from the current 24% of the population to a commanding 61% by 2047. This demographic shift will create a massive domestic consumer market, driving demand across sectors from automobiles and electronics to housing and entertainment.
Complementing this is a powerful digital and technological transformation. India's digital public infrastructure, including platforms like Aadhaar, UPI, and ONDC, is highlighted as a key competitive advantage, boosting financial inclusion, streamlining commerce, and fostering innovation. The report emphasizes that strategic investments in physical infrastructure—such as roads, ports, and railways—are crucial to support this growth and enhance manufacturing competitiveness through initiatives like the Production Linked Incentive (PLI) schemes.
Navigating Challenges on the Path to Prosperity
While the long-term outlook is overwhelmingly positive, the EY report does not shy away from outlining the significant hurdles that must be overcome. To unlock its full potential, India must prioritize several key areas. Upskilling the workforce is paramount, as the economy evolves towards more technology and services-oriented sectors. Enhancing female labor force participation is another critical lever for boosting overall productivity and growth.
Furthermore, the report underscores the need for continued focus on improving the ease of doing business, strengthening the manufacturing base to integrate more deeply into global value chains, and managing the urban transition as millions move to cities. Sustainable and inclusive growth, which balances economic progress with environmental and social considerations, is presented as the essential framework for achieving the $26 trillion vision.
The Global and Domestic Implications
The realization of this growth trajectory would have profound implications. Domestically, it would translate into a substantial rise in per capita income, lifting millions out of poverty and creating a vast, affluent consumer base. For the global economy, a $26 trillion Indian economy would represent a major new center of growth, trade, and investment, reshaping geopolitical and economic alliances.
The EY report concludes that the coming decades represent 'India's Century,' a period of historic economic transformation. The combination of demographic dividends, digital prowess, and strategic policy reforms positions India uniquely to achieve sustained high growth. The journey to 2047 will require consistent policy execution and investment in human and physical capital, but the foundation for becoming a global economic powerhouse is undeniably being laid today.
