Indian economy projected to overtake U.S. by 2040
By 2040 India could edge past the US to become the world’s second largest economy in purchasing power parity (PPP) terms, says a report.
According to PwC, E7 economies comprising Brazil, China, India, Indonesia, Mexico, Russia and Turkey would grow at an annual average rate of almost 3.5 percent over the next 34 years, compared to just 1.6 percent for the advanced G7 nations of Canada, France, Germany, Italy, Japan, the UK and the US.
“In fact, China has already overtaken the US to become the world’s largest economy in PPP terms, while India currently stands in third place and is projected to overtake the US by 2040 in PPP terms,” PwC said.
Moreover, PwC believes Vietnam, India and Bangladesh would be three of the world’s fastest growing economies over this period.
“We will continue to see shift in global economic power away from established advanced economies towards emerging economies in Asia and elsewhere.
“The E7 could comprise almost 50 percent of world GDP by 2050, while the G7’s share declines to only just over 20 percent,” PwC chief economist and co-author of the report John Hawksworth said. ■