India could replace China as the World’s growth engine around 2027 to 2029

India is expected to equal China’s economic size in 2005 around 2023-2030. China was 4.9% of world GDP in 2005.

If India continues to grow at around 7%, it would have the same global punch as the 2005 economy of China in 2029

India’s economy grew a stronger-than-expected 7.9% in the March quarter, making it the fastest growing major economy.

HSBC said that if India grows at 8% rate, it would achieve the 4.9% share by 2027.

India’s investment rate has been lower than that of China’s. HSBC said that India would have to boost its investment rate by 10% or so of GDP, to achieve China’s faster growth rate of the last decade. If India achieved and sustained 10% annual GDP growth then it would match China’s 2005 economy in 2023

China is the world’s second largest economy, with a GDP of over $10 trillion, five times bigger than India’s $2 trillion economy.

China’s staggering growth – an average of 10 per cent between 2002 and 2012 according to World Bank – not only helped raise living standards in the country, but also paved the way for the emergence of China as an engine of global growth.

SOURCES – HSBC, Economic Times