India to be the third largest economy by 2050

India will be the third largest economy in the world after China and United States by 2050, a US-based internationally recognised foreign-policy think tank has said.

An article “The G20 in 2050″, carried in the November bulletin of the Carnegie Endowment for International Peace said: “China, India, and the United States will emerge as the world’s three largest economies in 2050. Their total GDP, in real US dollar terms, will be over 70 per cent more than that of the other G20 countries combined.”

Other main findings include, China will become the world’s largest economy in 2032, and grow to be 20 per cent larger than the United States by 2050. Over the next forty years, nearly 60 per cent of G20 economic growth will come from Brazil, China, India, Russia, and Mexico alone (BRIC+M).

The article was written by Uri Dadush and Bennett Stancil. A Frenchman and former director of World Bank, Dadush is the director of the International Economics Programme at the Foundation, and Stancil is a Fellow at the Programme.

“In China and India alone, GDP is predicted to increase by nearly $60 trillion —the current world GDP — but the wide disparity in per capita GDP among these three will persist,” they noted.

India’s annual average GDP growth between 2009-2050 is predicted to 6.19 per cent, and these emerging markets will not rise among the world’s richest countries in per capita terms- their average income in 2050 will still be 40 per cent below that of the G7 nations presently.

India’s Purchasing Power Parity (PPP) will be 97 per cent as large as that of the United States by 2050. India is expected to become the world’s most populous nation in 2031— and an average exchange rate appreciation of 0.9 per cent per year will push annual GDP growth to an average of 6.2 per cent, according to the study. [Source]

This reminds me of the post BSE Sensex to reach 1 Lakhs by 2025 where I mentioned about the GDP Growth which India is going to face in next 20 – 25 years. There was one more report which said in next seven years Sensex could cross 50,000 mark.

There is a direct effect between the growth of Sensex and the economy.

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