India has probably surpassed Japan to become the world’s third
largest economy after the US and China, Paris-based think-tank OECD said
on Wednesday even as it lowered the country’s economic growth
projection for 2013 to 5.3 per cent.
“China will likely pass the United States as the world’s largest economy in the next few years and India has probably recently surpassed Japan to be third largest,” said the OECD Economic Outlook report.
Until around 2020, China is set to have to highest growth rate among major countries, but could be then surpassed by India, it further said.
OECD also said that by early 2030s, the BRIICS’ (Brazil, Russia, India, Indonesia, China and South Africa) combined GDP should roughly equal that of the OECD (based on current membership), compared with just over half that of OECD now.
“Between now and 2060, GDP per capita is seen to increase more than eight-fold in India and six-fold in Indonesia and China,” it added.
The Organisation for Economic Cooperation and Development (OECD), which in November had projected India to grow at 5.9 per cent in 2013, cautioned that structural bottlenecks in the country could further constrain investment and growth potential.
“India’s GDP growth is projected to rise gradually over the next two years. More growth would be forthcoming if structural bottlenecks were swept away by fundamental structural reforms,” the report said.
Looking ahead, it said India is likely to improve growth to 6.7 per cent next year, after having logged a decade’s low of 3.8 per cent in 2012.
In the United States, activity is projected to rise by 1.9 per cent this year and by a further 2.8 per cent in 2014, the grouping said.
The GDP in the euro area is expected to decline by 0.6 per cent this year and then rebound by 1.1 per cent in 2014. Japan is expected to grow by 1.6 per cent in 2013 and 1.4 per cent in 2014, it added.
“China will likely pass the United States as the world’s largest economy in the next few years and India has probably recently surpassed Japan to be third largest,” said the OECD Economic Outlook report.
Until around 2020, China is set to have to highest growth rate among major countries, but could be then surpassed by India, it further said.
OECD also said that by early 2030s, the BRIICS’ (Brazil, Russia, India, Indonesia, China and South Africa) combined GDP should roughly equal that of the OECD (based on current membership), compared with just over half that of OECD now.
“Between now and 2060, GDP per capita is seen to increase more than eight-fold in India and six-fold in Indonesia and China,” it added.
The Organisation for Economic Cooperation and Development (OECD), which in November had projected India to grow at 5.9 per cent in 2013, cautioned that structural bottlenecks in the country could further constrain investment and growth potential.
“India’s GDP growth is projected to rise gradually over the next two years. More growth would be forthcoming if structural bottlenecks were swept away by fundamental structural reforms,” the report said.
Looking ahead, it said India is likely to improve growth to 6.7 per cent next year, after having logged a decade’s low of 3.8 per cent in 2012.
In the United States, activity is projected to rise by 1.9 per cent this year and by a further 2.8 per cent in 2014, the grouping said.
The GDP in the euro area is expected to decline by 0.6 per cent this year and then rebound by 1.1 per cent in 2014. Japan is expected to grow by 1.6 per cent in 2013 and 1.4 per cent in 2014, it added.
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