NEW DELHI, India — India is projected to grow into a $26 trillion economy by 2047-48, even while sustaining a steady but moderate annual growth rate of about 6 percent, according to a new report by Ernst and Young. The report estimates that per capita income would exceed $15,000 by that time, nearly six times current levels.
The report said India is uniquely positioned to strengthen its role in the global economy over the coming decades and is expected to overtake Germany and Japan to become the world’s third-largest economy after China and the United States by 2030.
India has already reached critical mass as the world’s fifth-largest economy, largely due to decades of economic liberalization that increased the role of private capital, improved market orientation, and boosted global competitiveness. The report noted that India’s long-term growth projections are the highest among major economies.
A major driver of this expansion has been the services sector. Services exports have grown by about 14 percent over the past two decades and reached $254.5 billion in 2021-22. Information technology services and business process outsourcing accounted for $157 billion of that total, driven by both Indian and multinational companies.
Global corporations have also increasingly turned to India for talent through their capability centers, which now employ more than 5 million people. What began as a cost-saving strategy has evolved into a source of high-quality talent and innovation. India hosts around 1,500 global capability centers, accounting for roughly 45 percent of such centers worldwide, reflecting their scalability, skilled workforce, and operational efficiency.
These trends have helped position India as the “office of the world” for companies seeking to deploy technology at scale. The report said India is well placed to move further up the value chain, providing more skill-intensive and digitally delivered services.
Indian and global technology firms are expected to expand higher-value offerings from India, including consulting, experience design, full-stack digital engineering, Industry 4.0 product development, and advanced business process management. Many companies are also setting up centers of excellence in India for cloud computing, analytics, artificial intelligence, and other emerging technologies.
Beyond IT, the report highlighted opportunities in sectors such as education and healthcare, where India could help fill talent gaps in developed economies facing demographic pressures, particularly as services increasingly move to digital platforms.
India’s large digital base, including about 1.2 billion telecom subscribers and 837 million internet users, combined with government-backed digital platforms, has supported the growth of a digital economy, strengthened governance, and enabled a robust digital payments ecosystem.
The report noted that consistent government support over the past decade for scalable digital public infrastructure has translated into economic gains and fueled innovation and entrepreneurship. Between 2014 and 2019, the digital economy grew 15.6 percent in absolute dollar terms, about 2.4 times faster than the overall economy.
India’s economic trajectory carries global significance, the report said, given that the country is home to roughly one-sixth of the world’s population and is set to remain a major contributor to the global workforce for decades to come. (Source: IANS)
