New York, Jun 24: Emerging markets are expected to grow faster than developed economies, and India is likely to become the third largest economy by 2030 in the world after China and the United States, says a report.
According to the Economist Intelligence Unit (EIU), emerging markets are expected to grow faster than developed economies, and as a result developing countries such as China and India are likely to overtake current global leaders such as the US, Japan and Western Europe.
"China is expected to overtake the United States in 2026 in nominal GDP in US 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," the EIU report said.
By 2030 the top three economies of the world would be the US, China and India. Meanwhile, other emerging markets, such as Indonesia and Mexico, would rank among the top ten economies at market exchanges rates by 2050, overtaking economies such as Italy and Russia.
Besides, China, the US and India, the 10 economies in 2050 at market exchange rates would be Indonesia (4th), Japan (5th), Germany (6th), Brazil (7th), Mexico (8th), the UK (9th) and France (10th).
Such will be the growth of China and India that by 2050 they will each be richer than the next five (Indonesia, Germany, Japan, Brazil, and the UK) put together, the report said adding "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," the EIU report titled 'Long-term macroeconomic forecasts' said.
However, despite their low growth outlook advanced economies cannot be ignored, as the spending power of consumers in these regions will remain significantly higher, the report added.