India to become the fastest growing economy

Though published back in May, the Deutsche Bank special report India rising: A medium-term perspective (PDF) by economist Jennifer Asuncion-Mund is well worth a read for those who have not yet seen it. Her conclusions are very upbeat:

India has come a long way from its inward-looking economic strategy of over 50 years ago. Economic liberalisation and the gradual opening up to the world have boosted growth and lifted millions of people out of poverty. This paper argues that the continuation of the reform process will allow India to stay on a high growth path of roughly 6% per year on average over the next 10 to 15 years. If reforms were pursued more aggressively, real GDP growth could reach 7%-8% per year.

India will thus become the fastest growing economy out of 34 developed and emerging markets during that period and the world’s third largest economy by 2020. Moreover, its GDP per capita will double, from roughly USD 2,500 today (at purchasing power parity) to almost USD 5,000 in 2020. Favourable demographics, increasing investment in education and infrastructure and further integration with the world economy are the factors behind our projections.

This study is the first in a new India Special series to be published by the Bank.

Comments

[Edward Hugh]

At the risk of appearing to be a New Economist 'groupie', I think you are right on target to be pushing India. It is going to be just as big a story as China, and between the two of them they will change the way we think about the global economy.

[N.Lakshmi]

Its wonderful to see India get the limelight. I like the clarity of this report, listing not just the factors that caused the rise of India, but the factors that will contribute to keep the growth like "further integration with the world economy".

Thanks,
Lakshmi

Moomli -My Only One Moment to Liberate India
http://www.moomli.com

[ravi pravesh]

want to know more and more...