India's Economy Projected to Reach $26 Trillion by 2047, Driven by Youth and Innovation
Economic Growth Projections for India
New Delhi, January 3, 2026: India's economy is expected to soar to $26 trillion (approximately ₹2,314 lakh crore) by 2047, fueled by its youthful population, digital capabilities, a robust startup ecosystem, and strengths in manufacturing and green energy. Currently, the Indian economy stands at around $4.18 trillion. This forecast is detailed in a recent report titled 'India@100: Realizing the potential of a USD 26 trillion economy' by a leading rating agency.
According to the report, maintaining an average annual growth rate of 6% could see India's GDP reach $26 trillion by 2047-48. This growth would increase per capita income nearly sixfold, exceeding $15,000 (around ₹13.5 lakh). The agency believes India is rapidly progressing towards becoming the world's third-largest economy, following the USA and China.
Seven Key Factors Driving Optimism
1. Large Working Population: By 2030, 68.9% of India's population will be of working age (15-64 years), translating to approximately 1.04 billion individuals in the workforce. This demographic is expected to contribute 24-25% of the new labor force globally in the next decade, with an average age of 28.4 years.
2. Strong Startup Ecosystem: India boasts 107 unicorns, which have grown at an annual rate of 66% over the past four years. Their total valuation has reached ₹7.37 lakh crore, with investors earning around ₹3.82 lakh crore in profits. The startup ecosystem in India continues to show promising potential.
3. Manufacturing Opportunities: Under the Production-Linked Incentive (PLI) scheme, investment proposals worth ₹2.5 lakh crore have been received across 14 sectors. This initiative could create new jobs for 43% of individuals currently employed in agriculture, thereby boosting infrastructure investments.
4. Increasing Female Workforce Participation: Women make up nearly 49% of students in higher education in India, indicating a significant rise in female participation in the workforce in the coming years. This trend presents long-term productivity growth opportunities for the country.
5. Surge in Digital Payments: The UPI network connects over 350 banks and has more than 260 million unique users. Between 2014 and 2019, India's digital economy grew at a rate of 15.6%, which is 2.4 times faster than the overall economic growth.
6. Room for Increased Borrowing: According to the World Bank, the total debt extended to private companies in India in 2020 was only 55% of the country's GDP, significantly lower than the global average of 148%. This indicates that companies have the capacity to borrow more.
7. Clean Energy and Sustainable Development: India aims to achieve net-zero emissions by 2070, which means reducing reliance on fossil fuels like petrol and diesel. This presents a significant opportunity. To meet this goal, the government must reduce carbon usage by 45% relative to GDP by 2030, focusing on developing green infrastructure. The central government has allocated $14.5 billion to support the electric vehicle ecosystem, with a potential shift of 100 million people to EVs by 2030.