India Set to Become a $26 Trillion Economy by 2047‑48; Per Capita Income to Hit $15,000: EY Report
December 29–30, 2025 / January 6, 2026 — Economic Outlook, India
A major economic forecast from global consultancy Ernst & Young (EY) projects that **India’s economy could grow to a staggering US $26 trillion by the year 2047‑48 — nearly six times its current size — with **per capita income climbing above US $15,000 over the same period. This long‑term outlook is part of EY’s India@100 report, which examines India’s growth potential as it approaches its 100th year of independence. EY+1
Key Projections from the EY Report
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GDP Growth Path: Even with a stable yet modest average growth rate of around 6 % per year, India’s nominal GDP could expand to approximately $26 trillion by 2047‑48. EY
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Per Capita Income Rise: Per capita income — a measure of average income per person — is expected to exceed $15,000 by 2047‑48, which would represent nearly a sixfold increase from current levels. EY
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Global Standing: With this growth trajectory, India is projected to overtake major global economies and become a leading economic power by mid‑century. Some estimates suggest India could be the third‑largest economy, trailing only the United States and China by around 2030. IANS News
What’s Driving This Growth
According to the EY analysis:
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Economic Reforms: Continued liberalization and policies encouraging private investment are seen as crucial for long‑term expansion. EY
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Demographic Advantage: A large and youthful workforce provides India with a strong labor pool and potential productivity gains. EY
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Services & Tech Sector Strength: India’s robust services exports — especially in IT and business services — have propelled growth and will likely remain a key engine of expansion. EY
Why This Matters
If realized, a $26 trillion economy with an average income of over $15,000 would significantly improve living standards across India’s vast population and reposition the country among the world’s foremost economic powers. Such growth would require sustained investment, skill development, infrastructure expansion, and favorable global conditions. EY