India moving fast towards growing economy

India moving fast towards growing economy

There is some good news on economic front among the prevailing drift and
apparent lack of governance in the country. Despite bumbling on several
political fronts the government is likely to make the country as the world’s
fastest growing economy and become the largest economy of the world by 2050 (see
the Table below). This assessment is made by financial services group Citi on
Global Growth Generators. The reasons behind growing Indian economy are India’s
economic fundamentals remained strong, high savings, high investment rate, the
arrival of home-grown companies in the global world and foreign direct
investment.    

This prediction is based on Purchasing Power Parity rather than exchange rates.
It also predicts that the country is likely to grow at 6.4% annually over the
40-year period between 2010 and 2050. India is likely to take over Japan by
2015, it would surpass US by 2040.

India’s major assets which will help achieve the above are its demography (large
young population), high saving rate, and education system. India’s population of
working age is expected to grow by 40.7% between 2010 and 2050.

However the big rider is that all this would depend upon India’s ability to
create large number of productive jobs, improve its agriculture sector which
constitutes of large population and where production remains quite inefficient.

Other areas where India needs to improvise are its infrastructure, think
positive towards FDI, ensure that its working population is educated and trained
well.

Top 10 Economies of the World            (In trillion 2010 USD)

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