IBEF: May 05, 2011
New Delhi: According to the current projections, India and six other major economies in Asia will be driving the region’s growth and could account for more than half of the global gross domestic product by 2050. This was stated in a report by the Asian Development Bank (ADB).
India would grow to be a US$ 40.4 trillion economy from the current US$ 1.4 trillion in 2010. Although India’s share in the global gross domestic product would be 14 per cent while China’s would be 22 per cent, India will witness a faster rate of economic growth in the next 40 years compared to China. This is due to the fact that India has a young population which will grow into a one billion strong work force by 2050, which will be 25 per cent more than China.
The average per capita income of these seven countries (Peoples Republic of China, India, Indonesia, Japan, Republic of Korea, Malaysia, and Thailand) would be US$ 45,800, which will be 25 per cent higher than the global average of US$ 36,600, according to the report. The combined gross domestic product (GDP) of these countries amounted to US$ 14.2 trillion in 2010 which was 87 per cent of all Asian countries. This share is expected to rise to 90 per cent by 2050.
"The impression has been created that the ascendancy of Asia is somehow an immutable fact and the only question is merely when China and India will become the largest and second largest global economies, as if the countries are on autopilot, gliding smoothly to their rightful destiny. Its leaders must be aware that future prosperity will need to be earned, in the same way that developed economies today earned their success over the past 40 years,” as per the report.
The report also stated that the Asian economies should focus on promoting entrepreneurship and innovation to make breakthrough in science and technology and be at par with countries like Japan, Republic of Korea and other high-income economies.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.