Circa, 2050, Indian economy will be the fastest growing in the world.
Three years after Goldman Sachs came out with its path breaking BIRC (Brazil, Russia, India, China) report that predicted that India will become the third-largest economy by 2030, there is a feeling of déjà vu. A PricewaterhouseCoopers report The World in 2050 suggests that India has the potential to become the fastest growing large economy in the world by 2050 with a gross domestic product close to 60% of the US on the purchasing power parity basis. This will make it the world’s third-largest economy.
India, according to the report, will grow at 7.6 per cent in dollar terms & China at 6.3 per cent per annum. So, while China will continue to remain the fastest growing BRIC economy in the next few years, India in 2013 and Brazil in 2023 will overtake it in terms of growth rates. The much younger and faster-growing populations of India and Brazil will be able to sustain stable growth rates till 2030, compared to China, which will be hampered by an ageing population given its one-child norm.
But, this kind of growth is only possible if there is an attempt to boost general education levels in these countries, and facilitation of a vastly greater number of business start-ups in areas adversely affected by global competition in the intervening years.