India Set to Overtake China as Global Growth Leader by 2028: Bloomberg
India is projected to surpass China as the world's leading economy in terms of global growth by around 2028, according to a report by Bloomberg.
This shift is due in part to India's large population of 1.4 billion people, making it a significant growth factor.
The analysis by Bloomberg Economics uses purchasing power parity (PPP) to compare economic productivity and living standards between countries, and predicts that India will become the top contributor to global growth on a PPP basis in the coming years.
China's $17.8 trillion economy is projected to slow down to 3.5% growth by the end of the decade from 5.2% in 2023 due to the Covid-19 pandemic and economic pressure from the US and its allies.
Western governments view Beijing as a rival instead of an economic partner.
Countries and businesses are diversifying supply chains from China to India, which has one of the fastest-growing economies in the world.
In Bloomberg Economics' base case scenario, India's growth will accelerate to 9% by the end of the decade from the estimated 7.6% during the fiscal year that ended on March 31.
China and India are two rapidly growing economies with a focus on electronics manufacturing and the aviation industry.
Their large and young populations are key factors in their economic growth.
According to Bloomberg, China will see the retirement of 48.6 million medium skilled workers by 2040, while India will add 38.7 million during the same period.
However, India's success hinges on the government's ability to improve infrastructure, reduce bureaucracy, and expand the workforce's skills.
India's labor force participation rate was at 55.4% in 2022, which is one of the lowest in the world.
In China, the workforce participation rate is 76%.
India, with a workforce participation rate of 76%, is currently the world's fifth-largest economy with a GDP of $2.9 trillion dollars.
Prime Minister Narendra Modi aims to elevate India's economy to the top position globally.
The US, with a GDP of $25.44 trillion dollars, is the world's largest economy, followed by China, Japan, and Germany.
The analysis by Bloomberg Economics uses purchasing power parity (PPP) to compare economic productivity and living standards between countries, and predicts that India will become the top contributor to global growth on a PPP basis in the coming years.
China's $17.8 trillion economy is projected to slow down to 3.5% growth by the end of the decade from 5.2% in 2023 due to the Covid-19 pandemic and economic pressure from the US and its allies.
Western governments view Beijing as a rival instead of an economic partner.
Countries and businesses are diversifying supply chains from China to India, which has one of the fastest-growing economies in the world.
In Bloomberg Economics' base case scenario, India's growth will accelerate to 9% by the end of the decade from the estimated 7.6% during the fiscal year that ended on March 31.
China and India are two rapidly growing economies with a focus on electronics manufacturing and the aviation industry.
Their large and young populations are key factors in their economic growth.
According to Bloomberg, China will see the retirement of 48.6 million medium skilled workers by 2040, while India will add 38.7 million during the same period.
However, India's success hinges on the government's ability to improve infrastructure, reduce bureaucracy, and expand the workforce's skills.
India's labor force participation rate was at 55.4% in 2022, which is one of the lowest in the world.
In China, the workforce participation rate is 76%.
India, with a workforce participation rate of 76%, is currently the world's fifth-largest economy with a GDP of $2.9 trillion dollars.
Prime Minister Narendra Modi aims to elevate India's economy to the top position globally.
The US, with a GDP of $25.44 trillion dollars, is the world's largest economy, followed by China, Japan, and Germany.