India And China May Surpass US To Become Leading Economies By 2030
The largest economy of the world, US may lose its throne to China and India and may slip to the third position by 2030. A UK based financial service provider Standard Chartered Plc conducted a study, the economists at the firm belief, China’s aggressive industrialization policy would help it solidify its claims of being the largest economy of the world in the next decade. In the same timeline, US might also see India surpassing its economy to take the second spot.
The Standard Chartered Economists took two major parameters into consideration, Gross Domestic Product (GDP) and Purchasing Power Parity (PPP) exchange rates. The analysts believe India’s economic growth would rise to 7.8% by 2020, while China’s would slow down to 5.0% and maintain the same rate till 2030.
Another interesting observation from the study says, apart from becoming the second largest economy by 2030, India would also surpass China for being the most populous country in the world.
India’s more than 50% population falls under the age of 25, which might prove to be a big factor in highly accelerated growth rates over the years.
The Predication Is a Clear Indication Of Emerging Economies Taking Over The World Market
The downfall of US from being the largest economy of the world to the third largest economy in the coming decade is a clear indication of shifting bases from western countries towards emerging economies in South Asia.
The Shifting Economic domains are visible from the fact that in 2018 Asia contributed 28% to the world’s GDP, which is set to grow to 35% by 2030. The numbers are a clear indication that Asia is on par with American and European economies combined.
Looking at the current growth rates, the next decade could possibly see many changes in the top 10 leading economy rankings. According to the to the study, Indonesia would climb to the fourth position while Turkey following just behind at five. Brazil would be at the sixth position while Egypt would take the seventh spot. The eighth, ninth and tenth spot would be shared by Russia, Japan, and Germany respectively.
If the predictions of the study come true, it would see some of the current leaders like France and Great Britain been thrown out of the top 10 list.
The study may or may not come true, but the importance of leading south Asian economies like China and India are quite visible to everyone. Leading tech giants like Apple, Google, and Samsung have already started to focus on Indian market specific products because of the huge customer base, cheap labor, friendly government policies that the country serves.
China, on the other hand, has streamlined governance with great control which proves helpful in building the infrastructure and ecosystem on a faster scale. China is also a paradise for giants like Apple because of the abundance of cheap labor and tech. The cold war between the current leading economy United States and the rapidly growing Chinese Economy are at an all time high. Let us see how things pan out in the next decade.