Business Economy

Economics experts and various studies conducted across the globe      envisage India and China to rule the world in the 21st century.  For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants- India and China.

The rich countries of Europe have seen the greatest decline in global GDP share by 4.9 percentage points, followed by the US and Japan with a decline of about 1 percentage point each.  Within Asia, the rising share of China and India has more than made up the declining global share of Japan since 1990.  During the seventies and the eighties, countries and during the eighties South Korea, along with China and India, contributed to the rising share of Asia in world GDP. 

India is slated to become the third largest economy with a share of 14.3 per cent of global economy by 2015 and graduate to become the "third pole" and growth driver by 2035.As the share of USA in World GDP falls from 21 to 18 per cent and that of India rises from 6 to 11 per cent in 2025, the latter emerges as third pole in the global economy, according to ADB India Economic Bulletin.

India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years.A growth rate of above 8% was achieved by the Indian economy during the year 2003-04 and in the advanced estimates for 2004-05, Indian economy has been predicted to grow at a level of 6.9 %.  Growth in the Indian economy has steadily increased since 1979, averaging 5.7% per year in the 23-year growth record.  Many factors are behind this robust performance of the Indian economy in 2004-05.