The Indian economy will reach a new level

By Rhod Mackenzie

According to a report by India Ratings and Research, India has the potential to become an upper-middle-income country by FY 2033-36 and a $15 trillion economy between FY 2043 and 2047.
Until 2006, the World Bank classified India as a low-income country. India moved into the lower-middle-income category in 2007 and has remained there ever since. In 2022, India's GDP per capita was $2,390. To become an upper-middle-income country, per capita income would need to be between $4,466 and $13,845.
India Ratings and Research (Ind-Ra) estimates that the Indian economy's path forward will reach $3.6 trillion in fiscal year 2024. The growth rate of real GDP, inflation (GDP deflator), and the rupee/dollar exchange rate will determine this. Sunil Kumar Sinha, senior director and chief economist at the agency, stated that the Indian economy is expected to enter the upper-middle-income category during FY 2033-2036 and reach $15 trillion during FY 2043-2047.
The agency listed various scenarios for the economy to reach $5 trillion by fiscal year 2030 with a per capita income of $3,467. These scenarios include a real GDP growth rate of 6.25%, a GDP deflator increase of 3.5%, and a depreciation of the rupee against the dollar by 3.25%.
The agency also estimated that India's per capita income will reach $9,218-$9,920 between fiscal year 2043 and 2047, bringing India much closer to the threshold of a high-income country.