India on Track for a $26 Trillion Economy by 2047–48: Growth Drivers and Structural Imperatives

India on Track for a $26 Trillion Economy by 2047–48: Growth Drivers and Structural Imperatives

According to projections by Ernst & Young (EY), India is steadily progressing toward becoming a $26 trillion economy by 2047–48, aligning with the national vision of achieving developed-nation status by the centenary of Independence. As of 2025, India’s nominal GDP stands at approximately $4.1–4.3 trillion, having doubled over the past decade. With sustained real GDP growth of around 6.5–7%, India has overtaken Japan to become the fourth-largest economy globally, behind the United States, China, and Germany.

Recent quarterly data underscores strong momentum. In Q2 FY26 (July–September 2025), GDP growth reached 8.2%, driven by resilient domestic demand, manufacturing expansion, and robust services performance. Private Final Consumption Expenditure (PFCE), accounting for nearly 62% of GDP, has emerged as a key stabiliser against global uncertainties. Manufacturing growth accelerated to 9.1%, while services expanded by 9.2%, with finance and professional services leading.