SKOCH report outlines path for India to grow from $4.2 trillion to $30 trillion economy

India’s ambition to become a $30 trillion economy by 2047 under the Viksit Bharat vision will require sustained high growth, structural reforms and a decisive improvement in how capital and savings are deployed, according to the SKOCH report on macro-economic imperatives. While India has emerged as a $4.2 trillion economy and the world’s fourth-largest in nominal terms, the scale of transformation needed over the next two decades goes far beyond recent growth achievements.

India’s expansion so far has been largely driven by the services sector and strong domestic consumption, which together form the backbone of the economy. Services contribute more than half of economic output, supported by technology, finance and digital activity, while rising incomes and a growing middle class have kept private consumption as the main engine of demand. However, the report cautions that this growth model alone will not be sufficient to reach the 2047 target.

To achieve a $30 trillion GDP, India would need to sustain annual growth of around 7.5 to 10 percent for over twenty years, with investment rising to 35 to 40 percent of GDP. This creates a significant financing challenge, as domestic savings would need to remain close to 30 percent. The report argues that the real constraint is not the availability of capital but its inefficient use, making capital productivity a central concern.

A key focus of the report is the need to strengthen pension and insurance systems to mobilise long-term domestic savings. Household financial savings have weakened in recent years, limiting the availability of patient capital for infrastructure, urban development and human capital investment. Expanding pension coverage and insurance markets would help pool household savings into stable, long-duration funds while reducing reliance on short-term or external financing.

The report also calls for smarter financial systems, including modern public debt instruments and deeper bond markets, to lower the cost of capital and improve liquidity. At the same time, faster growth in manufacturing, infrastructure and employment is needed to complement services-led expansion, absorb labour and improve export competitiveness, while addressing regional imbalances and labour force participation gaps.

In conclusion, the SKOCH report stresses that India’s transition from a $4.2 trillion economy today to a $30 trillion economy by 2047 will depend on sustained reforms, higher savings, better capital efficiency and productivity-led investment. Achieving Viksit Bharat will require long-term policy consistency, institutional strengthening and coordinated action across sectors and states to ensure growth is both durable and inclusive.