India poised to be 3rd largest economy by 2050

India,which is currently at the 11th position,would become the third largest economy in the world by 2050,well ahead of Japan and not too far behind the US,says a PricewaterhouseCoopers (PwC) report. The report ‘The World in 2050’ says that India’s share of world GDP at market exchange rate (MER) would increase from 2 per cent to 13 per cent,while the Chinese economy was likely to be larger than that of the US before 2035 and the E7 group of emerging economies would overtake the G7 group of developed nations before 2040.

The report says that the individual European Union member States will be much smaller than any of the Big 3 (China,US and India) by 2050. On the findings of the report,Jairaj Purandare,regional managing partner and leader (Markets & Industries),PwC India,said,“Over the coming decade,the Indian economy is likely to become less dependent on outsourcing and more focused on manufacturing exports,building on its strong engineering skills and the rising levels of education of its population.”

The PwC report indicates that China’s rate of gain on the US is projected to slow down progressively after 2020 because of its rapidly ageing population (accentuated by its one child policy for the past 30 years).

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The report says that while the exact date of overtaking is open to considerable uncertainty,it seems highly likely that China will emerge as the largest economy at MERs by 2040,the US would come to the second position closely followed by India.

John Hawksworth,chief economist,PwC UK,said,“In many ways the renewed dominance by 2050 of China and India,with their much larger populations,is a return to the historical norm prior to the Industrial Revolution.”