India Likely to Become Second-Largest Economy by 2030: Report

The report claims that while China will assume the lead, India will be the second-largest economy and the US, third.

India is likely to become the world’s second-largest economy, surpassing the United States of America (US), by 2030 according to a report by a British financial services firm. Image used for representation.

(Photo: iStock)

India is likely to become the world’s second-largest economy, surpassing the United States of America (US), by 2030, a report by British financial services firm, Standard Chartered Plc, has predicted.

The report claims that China will assume the top role by the same year, while the United States will be pushed back to third position after India, The Indian Express reported.

Indonesia is expected to assume the fourth position and Turkey, the fifth position in the listing, the report further claims.

The firm has further predicted that the markets which are currently emerging, will take up at least 7 out of the top 10 spots of the world’s largest economies.

According to various economists, while India is expected to accelerate to about 7.8 percent by the 2020s, the Chinese economy will moderate down to 5 percent by 2030, due to the sheer size of the latter’s economy, The Indian Express reported.

A group of economists from Standard Chartered Plc, lead by David Mann, said in a statement:

“Our long-term growth forecasts are underpinned by one key principle: countries’ share of world GDP should eventually converge with their share of the world’s population, driven by the convergence of per-capita GDP between advanced and emerging economies.”

Standard Chartered Economists, as reported by <i>The Indian Express </i>

These economists also found that the waning reform momentum in the emerging markets weighs on productivity, with a large percentage of people across the world entering the middle-income group by 2020.

(With inputs from The Indian Express)