Reforms in states key to India achieving a $55 trillion economy by 2047: Former CEA Subramanian

International Monetary Fund (IMF) Executive Director and former Chief Economic Advisor of the Center Krishnamurthy Subramanian on Saturday said India could become a $55 trillion economy by 2047 at a real growth rate of 8% per annum.

Apart from certain key factors, especially reforms undertaken at the state level, a ‘We Can’ approach is important to achieve growth that may be ambitious but achievable, he said while delivering a speech at the three-day International Startup Festival (ISF). 2024 which ended here.

Noting that the growth rate required to transform into a $55 trillion economy would still be modest compared to what Japan and China have achieved, Subramanian said India would have to do “a lot of hard work in terms of reforms” whether this in terms of enabling production or supporting the development of startups.

The key drivers for the country will be the formalization of the economy, which in turn will lead to greater productivity and credit creation. “Even among the formal sectors, Indian formal sectors lag far behind their global counterparts. Growth is about productivity and investment,” he said.

In their announcement, the organizers of ISF 2024, the International Startup Foundation, announced that in addition to software and technology startups, representatives of the agriculture, health, edu-tech and junicorns industries participated in the event. The main conclusion was to support a problem-solving approach in society and create the right ecosystem for innovators through appropriate mentoring, financing and providing market access to make their ventures successful.

“We had three insightful days of deliberation…the insights will help students, startup founders and others overcome challenges and support startup growth. Startups must focus on a problem-solving approach and constantly innovate…the focus should be on value creation, not on valuation,” said JA Choudhary, Chairman and Founder, ISF.