Validating India’s long-term growth story, an HSBC report has forecast that India will be the third-largest economy in the world by 2050, while China will be on the top followed by US.
Emerging economies such as India, Brazil, South Africa, Argentina, Russia will be the engine of growth for the world economy, the report titled The world in 2050, said.
“China and India will be the largest and third-largest economies in the world,” the report said. “World output will treble, as growth accelerates on the back of emerging economies.”
On an average, the global economy is projected to grow by 3% compared to just over 2% in the 2000s."By 2050, the emerging world will have increased five-fold and will be larger than the developed world," said report. "19 of the top 30 economies by GDP (gross domestic product) will be countries that we currently describe as ‘emerging’".
The report also expects India’s growth rate overcoming that of China in the coming years. “It will come as no surprise to see that China is near the top of the growth table. But as income per capita rises and the one-child policy leads to a demographic headwind, India’s growth rate will soon overtake that of China beyond 2030,” it said.
Emerging world will contribute twice as much as the developed world to global growth over this period, the report added.