Indian Economy To Be Bigger Than US In Purchasing Power Parity By 2050: 10 Facts

India is set to go past the economy of the United States by 2050 in purchasing power parity (PPP) terms, according to a report by PwC. India's growth, the report says, is a part of the larger trend of growth of the emerging market nations,  supported by relatively fast-growing populations, boosting domestic demand and the size of the workforce. Though, for the emerging markets to achieve their full potential, it will have to be complemented with investments in education and improvement in macroeconomic fundamentals.

Here are 10 facts from the report

1) In terms of growth, Vietnam, India and Bangladesh could be the fastest growing economies over the period to 2050, averaging growth of around 5 per cent per year.

2) World economy could double in size by 2042,  growing at an annual average real rate of around 2.5 per cent between 2016 and 2050.

3) China has already overtaken the US to be largest economy based on GDP in PPP terms, and could be the largest valued at market exchange rates before 2030.

4) India could overtake the US by 2050 to go into second place and Indonesia could move into fourth  place by 2050, overtaking advanced economies like Japan and Germany.
 

5) By 2050, six of the seven largest economies in the world could be emerging markets.

6) Vietnam could be the world's fastest growing large economy over the period to 2050, rising to 20th  position in the global GDP rankings by that date.

7) Turkey could overtake Italy by 2030 if it can overcome current political instability and make progress on economic reforms

8) Nigeria has potential to rise up the global GDP rankings, but only if it can diversify its economy and improve governance standards and infrastructure.

9) Though today's advanced economies will continue to have higher average incomes - with the possible exception of Italy, all of the G7 economies will  continue to sit above the E7 ( emerging markets) in the rankings of GDP per capita in 2050.

10) Emerging markets are projected to close the income gap gradually over time, but full convergence of income levels across the world is likely to take until well beyond 2050.