India Needs Investments Of $14.7 trn - $22.7 trn To Become Viksit Bharat By 2047: Niti Aayog
By 2047, India has to reach $30–31 trillion to meet the “Viksit Bharat” target. Current Policy scenario incorporates long-term macroeconomic assumptions and energy projections, while Net Zero scenario quantifies the macroeconomic impacts of India’s pathway consistent with achieving Net Zero emissions by 2070, while keeping all other growth assumptions unchanged
Chennai: India will need cumulative investments of $14.7 trillion under the current policy scenario to become Viksit Bharat or achieve high-income status by 2047. However, if the Net Zero target by 2070 is also considered, it will need $22.7 trillion to achieve the target, finds Niti Aayog.
By 2047, India has to reach $30–31 trillion to meet the “Viksit Bharat” target. Current Policy scenario incorporates long-term macroeconomic assumptions and energy projections, while Net Zero scenario quantifies the macroeconomic impacts of India’s pathway consistent with achieving Net Zero emissions by 2070, while keeping all other growth assumptions unchanged.
In the Current Policy Scenario, transition is financed through domestic savings or through foreign capital inflows, without additional subsidies or redistribution mechanisms. In the Net Zero scenario, renewable energy (RE) subsidy financing through domestic and foreign sources is added. These subsidies improve the affordability of electricity for consumers and industrial users, by offsetting the electricity price increases associated with the transition.
In the Current Policy Scenario, India’s GDP is projected to grow at an average annual rate of 7.4 per cent during 2026–30, reflecting strong momentum. Growth moderates slightly to 7 per cent between 2030 and 2045, remaining robust enough to support India’s goal of attaining developed-economy status by 2047.
Beyond that, growth eases to about 5 per cent in 2046–60 and to 2.8 per cent in 2060–70. The impact of the Net Zero pathway on GDP growth is marginal. The economy remains resilient in all scenarios, reaching roughly $6.8 trillion by 2030 and achieving high-income status in 2047 even under Net Zero.
Even with higher penetration of low-carbon technologies under the Net Zero Scenario, the impact on real GDP growth remains limited. Real GDP growth rates are endogenously determined and differ only marginally from the Current Policy Scenario, irrespective of financing assumptions. This finding holds even when accounting for financing uncertainties and the inclusion or exclusion of co-benefits from the low-carbon transition. By 2047, India will reach $30–31 trillion across all scenarios, meeting the “Viksit Bharat” target, finds Aayog.
