$42 trillion GDP by 2050 in PPP terms
$27.937 trillion GDP by 2050 in Market Exchange terms
India can become a $42 trillion economy by 2050 - says PWC 2050 Global report.
The report was released in 2015PWC Forecast - The world and India in 2050
India has the potential to become the second largest economy in the world by 2050 in PPP terms (third in MER terms), although this requires a sustained programme of structural reforms.
GDP in Dollars in PPP terms
2014 2030 20501 China 17,632 36,112 61,079
2 United States 17,416 25,451 41,384
3 India 7,277 17,138 42,205
4 Japan 4,788 6,006 7,914
These longer term trend growth estimates are based on the following key factors:
Growth in the labour force of working age (based on the latest UN population projections);
Increases in human capital, proxied here by average education levels across the adult population;
Growth in the physical capital stock, which is driven by capital investment net of depreciation; and
Total factor productivity growth, which is driven by technological progress and catching up by lower income countries with richer ones by making use of their technologies and processes.
The world will return to the pre-Industrial Revolution era when China and India dominated world GDP in large due to their great populations, and relatively efficient agricultural sectors at that time.
Breakdown of components of average real growth in GDP (2014 – 2050)
Average Population Average Real Growth Average GDP growth p.a. (in
growth p.a % per capita p.a % domestic currency)
India 0.7% 4.2% 4.9%
The Indian economy is projected to grow at an average annual rate of 6.4% in 2014 – 2020, but is
likely to see some moderation in the subsequent years. However, its growth rate will remain stronger than China after 2020 due to its younger population and greater scope for catch-up growth.
Investment rate assumptions
Investment as % GDP
Country Initial rate (2014) From 2025
India 25.7% 23.7%
Projections for GDP at market exchange rates (2014 dollars)
2014 2030 2050
Country GDP at MER GDP at MER GDP at MER
1 China 10,355 26,667 53,553
2 United States 17,416 25,451 41,384
3 India appx. 2 trillion 7,304 27,937
http://www.pwc.com/gx/en/issues/economy/the-world-in-2050.html
http://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf
http://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf
http://www.businessinsider.in/Can-India-be-a-42-trillion-economy-by-2050/articleshow/49352659.cms
Updated 15 August 2016, 1 November 2015
Updated 15 August 2016, 1 November 2015
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