India to become world's 3rd largest economy in 2050: Report

01 Jul '15

2 min read

China is expected to overtake the US in 2026 in nominal GDP in dollar terms and maintain its position as the largest economy to 2050. India is expected to move up the rankings to third place, with real growth averaging close to 5 per cent up to 2050, according to a report by the Economist Intelligence Unit (EIU).

Indonesia and Mexico are expected to leap into the top ten world economies from 16th and 15th place in 2014 to fourth and ninth place respectively by 2050. The US, Germany, the UK and France will all move down the rankings, but only Italy will lose its place within the top ten.

By 2030 the top three economies of the world will be the US, China and India. Such will be the growth of China and India, in particular, that by 2050 they will each be richer than the next five (Indonesia, Germany, Japan, Brazil, and the UK) put together. This will represent a scale of wealth relative to the rest of the top ten that is unique in recorded history.

Given China’s and India’s economic might, they will take on a much bigger role in addressing global issues such as climate change, international security and global economic governance. In the medium term, this will require the world’s existing powers—notably the US—to let India, and especially China, play a greater role on the world stage and adapt international institutions to allow them to exert greater influence, the report said. (SH)

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