In view of its continuing robust growth, India is expected to be the world’s largest economy by 2050, surpassing China and the US, a Citi report said. The estimates are based on purchasing power parity (PPP), an economic growth indicator that takes into account the purchasing power of each country’s currency, instead of the prevailing exchange rate conversion (GDP nominal).
Indian economy is expected to be nearly $ 85.97 trillion on PPP basis by 2050 from $ 3.92 trillion in 2010, Citi said. In terms of PPP, Indian economy — valued at $ 3.78 trillion — was at the fourth place in 2009. The country was behind the US, China and Japan, according to the World Bank.
Citi emphasised that a number of major changes within a relative short time are required for India to meet future challenges.
“…a further round of serious deregulation of the domestic economy and further trade liberalisation are required,” it noted.
The report said India’s population of working age is expected to grow by 40.7 per cent between 2010 and 2050.
India has successfully raised its aggregate savings rate to levels that would allow sustained high levels of domestic capital formation (the domestic saving rate averaged 34.4 percent over 2006-2009 and the gross domestic investment rate 32.4 percent), the report added.
- News Buzz: India largest Economy by 2050, 3G services launch, BSNL MTNL merger & more… (trak.in)
- India moving up fast as economic powerhouse (indiabusinessconnections.wordpress.com)
- India surpassing China: By 2013, India’s economy will be growing faster than China’s. (slate.com)
- Roubini: Reevaluating “Chindia”: The story of the elephant and the dragon (investmentpostcards.com)
- New markets ‘key to UK growth’ (bbc.co.uk)
- India will need a miracle to outpace China (money.cnn.com)
- Why The US Is Still The Number One Economy In The World, And Will Remain So For A Very, Very Long Time (treeofmamre.wordpress.com)
- GDP projections from PwC: how China, India and Brazil will overtake the West by 2050 (guardian.co.uk)