News: India may become the world's largest economy by 2050

#Updates

India may become the world's largest economy by 2050

A report by financial services firm, Citi on Global Growth Generators stated that India is likely to become the world’s largest economy worth $85.97 trillion in about 40 years, beating China and the US. “China should overtake the US to become the largest economy in the world by 2020, and then be overtaken by India by 2050,” the report said. The analysis is based upon purchasing power parity (PPP), which is an economic growth indicator that takes into consideration the purchasing power of each country’s currency, instead of the customary exchange rate conversion.

A report by financial services firm, Citi on Global Growth Generators stated that India is likely to become the world’s largest economy worth $85.97 trillion in about 40 years, beating China and the US. “China should overtake the US to become the largest economy in the world by 2020, and then be overtaken by India by 2050,” the report said. The analysis is based upon purchasing power parity (PPP), which is an economic growth indicator that takes into consideration the purchasing power of each country’s currency, instead of the customary exchange rate conversion.
According to the report, India’s real per capita GDP is likely to grow at 6.4% annually over the 40-year period between 2010 and 2050. While by 2015, it will overtake Japan to be the third largest economy in the world, it would surpass the US to become the second largest by 2040. “India is truly an emerging markets economy as regards the sectoral composition of its production and labour force,” the report said but added that “India’s assets are many.”
The Indian economy outshines others primarily because of its demographic dividend, high savings rate and a strong education system. “India’s population of working age is expected to grow by 40.7 percent between 2010 and 2050,” it stated. The report says that, “Its education system, while not without weaknesses, produces a large pool of cheap, internationally competitive, English-speaking graduates, allowing India to build up a comparative advantage in certain sectors, such as IT or business processes.”
Although the report results favour the economic stance of the country, it also mentions that India needs to make certain that its working population is well educated and trained to attain this forecast.
 

Topics: #Updates, C-Suite

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