Search the Internet          Tips  Sites: Finance, Investment

India to become third largest economy by 2025: Expert

India and China will become major players in the world economic arena in the next 25 years, surging ahead of the industrial US and European powers, a global financial expert has said.

If the present economic trend continues, China will overtake the United States in the global output with India becoming the third largest economy in the world ahead of Japan and Germany, said Shahid Javed Burki, a former World Bank expert.

In 2025, "China's and India's share in global output will be about equal to the present share of US and Europe. The main significance of this development is that these two Asian economies would have climbed to the top of the league, displacing a number of European countries," he said.

"The size of the Indian economy at $12 trillion will be nearly forty per cent larger than that of the US economy in 2000. Japan and Germany will hold the fourth and fifth place while Brazil and Mexico would have overtaken France and UK to be in sixth and seventh places," he said in his address at the United Nations.

Also, at the 2000 prices, the value of global output would have increased from $40 trillion to $95 trillion by 2025.

By then China with output of $25 trillion, which would be three times the current US economy will account for 26 per cent of global product while share of America will remain at the same level of 21 per cent.

India, presently with less than six per cent of the global product, would see its share more than double to 13 per cent, he said.

Tell us what you think of this report