Advertisement

HindustanTimes Thu,02 Oct 2014

Economy to top, but Indians to still lag

HT Correspondent, Hindustan Times  New Delhi, November 11, 2012
First Published: 11:17 IST(11/11/2012) | Last Updated: 22:14 IST(11/11/2012)

The Indian economy will be fastest growing over the next 50 years, leaving behind populous neighbour China, but may still rank towards the bottom of the heap in terms of living standards of its common citizens measured by per capita income, according to Paris-based Organisation of Economic Cooperation and Development (OECD).

Advertisement

During 2011-2060 India's gross domestic product (GDP) - or the total value of all goods and services - would grow at an average of 5.1% a year, among the fastest in the world, compared to China's 4% growth rate during the period.

India's per capita income will also grow more than 7-fold during this period, but the country will still rank towards the bottom by 2060 in absolute terms, said the report titled 'Looking to 2060: Long-term global growth prospects.'

The next 50 years will see major changes in the relative size of world economies.

Fast growth in China and India will make their combined GDP soon surpass that of the world's richest seven economies -  called the G7 economies. Notwithstanding fast growth in low-income and emerging countries, large cross-country differences in living standards will persist in 2060, the report said.

"Income per capita in the poorest economies will more than quadruple by 2060, and China and India will experience more than a seven-fold increase, but living standards in these countries and some other emerging countries will still only be one-quarter to 60% of the level in the leading countries in 2060," the report said.

"Income per capita in the poorest economies will more than quadruple by 2060, and China and India will experience more than a seven-fold increase, but living standards in these countries and some other emerging countries will still only be one-quarter to 60% of the level in the leading countries in 2060," OECD said.

"The extent of the catch-up (in terms of living standards) is more pronounced in China reflecting the momentum of particularly strong productivity growth and rising capital intensity over the last decade," it said.

This will bring China 25% above the current income level of the US, while income per capita in India will reach only around half the current US level, it added.


Advertisement
more from Business

Mallya has to clear loan defaults to serve as USL chairman: Diageo

Loan default cases against Vijay Mallya and his UB Group may cast a shadow over his continuation as chairman of United Spirits Ltd in the future, with its current parent, UK-based Diageo, making it clear in a statement from its headquarters in London.

markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved