India could be world's 'third largest economy by 2012'
Geoff Hiscock
From: The Australian
January 27, 2010
India could overtake Japan to become the world's third largest economy behind the United States and China by 2012 when measured by purchasing power parity, according to a new forecast by PricewaterhouseCoopers.
The accounting and professional services firm says its projections suggest China could be the largest economy in the world as early as 2020.
This is about five to 10 years ahead of the forecasts by investment bank Goldman Sachs in its BRICs (Brazil, Russia, India, China) reports over the past six years, which suggest China will move ahead of the US to be No. 1 some time between 2025 and 2030.
Goldman Sachs chief economist Jim ONeill said last week Chinas economy could eclipse Japans some time this year to move in to second spot.
The PwC report also says India is likely to grow significantly faster than China in the decade after 2020 as India reaps the demographic dividend of a younger and faster-growing population, and because its lower starting point gives it more economic catch-up potential.