India is likely to be the world’s third largest economy by 2050 on a purchasing power parity (PPP) basis, according to a PricewaterhouseCoopers (PWC) report issued on Wednesday. The report says it is likely the world economy’s size will quadruple by 2050 and China will be the largest economy in terms of PPP by 2017, and in terms of market exchange rates by 2027. According to the report, ‘World in 2050 The BRICs and Beyond: Prospects, Challenges and Opportunities’, by 2020, Russia is likely to be the largest European economy in terms of PPP. The world’s economies are likely to grow at a rate of slightly over three per cent a year. The emerging economies are likely to grow at four per cent a year and the advanced economies at two per cent a year.
The the seven major emerging economies (E7) —China, India, Brazil, Russia,Indonesia, Mexico and Turkey —are likely to be a little over 50 per cent larger than the G7 countries in GDP at market exchange rate terms by 2050 and around 75 per cent larger in PPP terms. It is estimated the E7 countries might overtake the G7 in 2017, with the gap widening after that. Every country studied, except India, is likely to see its share of working population declining by 2050.