India 50 Years from Now
Within 50 years, India will be next only to China and third to the USA in terms of economic ranking worldwide, the latest report of PreicewaterhouseCoopers revealed.
PwC’s report, ‘The World in 2050′ looks at the distribution of GDP of the countries studied, seeing that of India, which is currently the world’s 11th largest economy, to increase from 2 percent to 13 percent at the market exchange rate by 2050. In addition, China was projected to jump higher than US in the same GDP distribution before 2035 while the E7 group, composed of China, India, Brazil, Mexico, Russia, Indonesia, and Turkey, will take over G7′s economic status, a group of countries composed of the USA, Japan, United Kingdom, Germany, France, Canada, and Italy, before 2040.
PwC’s projection also said that every member state of the European Union will fall inferior to the Big 3 composed of USA, China, and India, in terms of economic size.
Jairaj Purandare, regional managing partner and leader (Markets & Industries) of PwC India, said the country is seen to be more independent on outsourcing whose focus would then shift to exportation given the engineering skills India’s workforce currently has and the educational level of India’s population.
After 2020, China’s ageing population will drag its gain on the US economy a little bit slower as a consequence of its one-child policy, PwC’s report added.
However, after 2040 China will become the largest economy at the market exchange rate followed by USA and India in close competition. PwC said, though, that the date when it would happen remains uncertain.
PwC UK’s chief economist John Hawksworth said 2050 would see the “return to the historical norm prior to the Industrial Revolution” with the “renewed dominance” of China and India.