India’s economy is growing at a staggering rate, around 8% to be more precise. And now, a new report from PricewaterhouseCoopers suggests that India will overtake the United States as the 2nd largest economy by 2050, following China. This report set out PwC’s latest long-term global growth projections to 2050 for 32 of the largest economies in the world, accounting for around 85% of world GDP.
“After a year of major political shocks with the Brexit vote, it might seem brave to opine on economic prospects for 2017, let alone 2050,” John Hawksworth, chief economist at PwC U.K., said in a statement Thursday accompanying the report. “By 2050 we project China will be the largest economy in the world by a significant margin, while India could have edged past the US into second place and Indonesia have risen to fourth place.”
More Indian students would now rather stay in India to study or work than coming to the US. India’s tech startups are also growing at an impressive rate.With a juggernaut economy such as India’s, more jobs are expected for its Indian citizens and with Prime Minister Modi’s ‘Make in India’ campaign promising to create around 100 million jobs in technology and manufacturing by 2025, India is looking to become a hotspot for jobs currently and in the future. Further, the India Smart Cities campaign which aims to transform around 100 cities into Smart Cities, and India’s initiative to have 100% electric vehicles by 2030, could make them the most technologically advanced country by 2050. India does not need the US to become the #1 economy in the world. Rather, it is the US that will need India’s support in the coming years.
Some of its other key findings from the PwC report were:
- The world economy could more than double in size by 2050, far outstripping population growth, due to continued technology-driven productivity improvements
- Emerging markets (E7) could grow around twice as fast as advanced economies (G7) on average
- As a result, six of the seven largest economies in the world are projected to be emerging economies in 2050 led by China (1st), India (2nd) and Indonesia (4th)
- The US could be down to third place in the global GDP rankings while the EU27’s share of world GDP could fall below 10% by 2050
- The UK could be down to 10th place by 2050, France out of the top 10 and Italy out of the top 20 as they are overtaken by faster growing emerging economies like Mexico, Turkey and Vietnam respectively
- But emerging economies need to enhance their institutions and their infrastructure significantly if they are to realize their long-term growth potential.