India to contribute 12.2 pc to global economic growth

Bangalore, June 24: Treading rapid strides in economic growth, India will leapfrog 14 places to garner tenth spot as a trading nation in the world by 2020 contributing 12.2 per cent to the global economy A study conducted by Economist Intelligence Unit (EIU) on sponsorship from Cisco Systems revealed that Asia, especially the power houses of India and China, would outpace the rest of the world, barring the United States, in gross domestic product (GDP), wages and consuming power.

The Study ''foresight 2020' said developing Asia would account for two-thirds of the increase in employment growth with India alone making up 30 per cent of the net increase in global employment with 142 million new jobs.

Propelled by the fast growth of India and China, Asia would increase its slice of world's GDP from 35 per cent in 2005 to 43 per cent in 2020 with India's share increasing from 6.2 per cent to 8.8 per cent.

In consumer spending, though the US would continue to be the largest customer market, China would emerge as the world second largest consumer market and India improve to a position to rival the bigger European markets. India's share in world consumer spending would increase from 1.0 per cent in 2005 to 3.1 per cent in 2020, the study said.

India's growing integration with global economy and favourable demographics would ensure a sustained 5.9 per cent growth in GDP during the next 15 years.

However, The average GDP in India would remain less than one-fifth to that of the US, an improvement from the present one-seventh. Both India and China would remain very much developing countries in 2020, the study said.

The EIU study, released today, surveyed 1656 top executives from 100 countries, conducting in depth interviews with executives, CEOs, Analysts and policy makers in late 2005.

UNI