GROWTH PROPELLERS: AT THE FORTUNE INDIA BOARDROOM, ECONOMISTS DELIBERATED ON WAYS TO PUT INDIA'S GDP ON THE 8%-PLUS GROWTH PATH TO ACHIEVE THE VIKSIT BHARAT GOALS BY 2047.

ON MAY 30, North Block heaved a sigh of relief as the Indian economy clocked in 7.4% GDP growth in the fourth quarter of 2024-25. A rebound in the construction and manufacturing sectors propelled the fastest quarterly growth of the fiscal. For policymakers in New Delhi, the figures came as a much-needed reprieve as not only did the economy spring back from the lows of 5.6% growth logged in the second quarter of FY25, but the momentum continues in the current financial year, the finance ministry stated.

- ASHUTOSH KUMAR

More than a fortnight later, on June 16, a research note from the government said, “India has become the fourth-largest global economy in 2025, driven by domestic reforms and global positioning under the vision of Atmanirbhar Bharat.” The country’s nominal GDP has more than tripled in a decade—from ₹106.57 lakh crore in 2014-15 to ₹330.68 lakh crore ($3.84 trillion) in 2024-25.

India’s growth continues to be the highest among the world’s large economies. Meanwhile, it has set its eyes on becoming a developed economy by 2047. According to the NITI Aayog’s ‘Vision for Viksit Bharat@2047: An Approach Paper’ released in July last year, the goal translates into a $30-trillion economy with a per capita income of $18,000 per annum. This means the Indian economy will have to double its size every six years, translating into a nominal GDP growth rate of around 12% from the current 9.8%.

A key milestone in the Viksit Bharat journey is to surpass Germany and become the third-largest global economy (about $7 trillion in current prices) by 2030. For this, India will have to gallop at a nominal GDP growth rate of 12.67% every year in the next five years. This begs the question—is the current real GDP growth rate of 6.5% or the nominal 9.8% sufficient to achieve the lofty goals? It may not be, say economists.

“A growth rate of 6.5% is insufficient for India to become a developed country by 2047. For a large country, this is not good enough. We need to increase our per capita income,” said Anubhuti Sahay, head of economic research at Standard Chartered, during an interaction at the