Will India Become the World’s Third Largest Economy in 2012?
The ongoing global recession and financial crisis is creating a paradigm shift across the globe. Economies have shrunk, production dwindled, and yet there are the few rays of hope that keep us praying for a better tomorrow. The recent news that China overtook Germany as the world’s largest exporter in 20009 should make the world sit up and take notice. Another such news is a report released by consultants Price Waterhouse Coopers (PwC) is that in terms of the Purchasing Power Parity (PPP), India is likely to achieve the third position in 2012, by the latest.
The report also talks about the growth of China and claims the country will be the world’s largest economy by the year 2030. In fact, the ascendance of India to no. 3 was expected by 2032, according to the Goldman Sachs report on the Brazil, Russia, India and China (BRIC) economies. The new findings indicate the date may have been off by nearly 20 years, thanks to the recent recession and economic slump following.
China’s growth is seen as a result of a number of factors, such as the government’s role in providing a strong stimulus to the local economy and so on. However, India on the other hand is growing by default, as we laud ourselves for not taking the kind of risks the western banks did. Even as the world economy shows small signs of emerging from hibernation, China is already in place to deliver the revival while expanding its own in a major way.
India on the other hand is expected to continue on its path a reasonably fast pace, overtaking China only by 2020 as the world’s fastest growing economy. This means that China will reach saturation point, the way the American economy has, in the next decade, after which we will continue to grow. What is not clear is the manner of growth that will emerge.
Looking at the Indian economy from the domestic perspective, a number of companies are either already investing abroad, or are poised to do so in the near future. The domestic market also continues to improve, with a number of IPOs seeing successful launches in the last few months of 2009. This is expected to continue into this year as well. This could be one of the reasons that India is set to achieve the top three position in the year after, with global economic cues also expected to stabilize, if not turn positive.
However, the one thing we lack as a nation is a clear framework on where we are going, and even the present growth stems from a policy of omission rather than commission. Infrastructure in the country is yet to reach rural masses, and power generation and supply continue to lag behind demand by close to two decades. If these challenges are not met urgently and economically, the dream of being the world’s fastest growing economy may remain just that.
http://testfunda.com/examprep/mba-resource/current-affairs/article/will-india-become-the-worlds-third-largest-economy-in-2012.htm?assetid=00da202e-977c-4754-b077-d53640eecf99
The ongoing global recession and financial crisis is creating a paradigm shift across the globe. Economies have shrunk, production dwindled, and yet there are the few rays of hope that keep us praying for a better tomorrow. The recent news that China overtook Germany as the world’s largest exporter in 20009 should make the world sit up and take notice. Another such news is a report released by consultants Price Waterhouse Coopers (PwC) is that in terms of the Purchasing Power Parity (PPP), India is likely to achieve the third position in 2012, by the latest.
The report also talks about the growth of China and claims the country will be the world’s largest economy by the year 2030. In fact, the ascendance of India to no. 3 was expected by 2032, according to the Goldman Sachs report on the Brazil, Russia, India and China (BRIC) economies. The new findings indicate the date may have been off by nearly 20 years, thanks to the recent recession and economic slump following.
China’s growth is seen as a result of a number of factors, such as the government’s role in providing a strong stimulus to the local economy and so on. However, India on the other hand is growing by default, as we laud ourselves for not taking the kind of risks the western banks did. Even as the world economy shows small signs of emerging from hibernation, China is already in place to deliver the revival while expanding its own in a major way.
India on the other hand is expected to continue on its path a reasonably fast pace, overtaking China only by 2020 as the world’s fastest growing economy. This means that China will reach saturation point, the way the American economy has, in the next decade, after which we will continue to grow. What is not clear is the manner of growth that will emerge.
Looking at the Indian economy from the domestic perspective, a number of companies are either already investing abroad, or are poised to do so in the near future. The domestic market also continues to improve, with a number of IPOs seeing successful launches in the last few months of 2009. This is expected to continue into this year as well. This could be one of the reasons that India is set to achieve the top three position in the year after, with global economic cues also expected to stabilize, if not turn positive.
However, the one thing we lack as a nation is a clear framework on where we are going, and even the present growth stems from a policy of omission rather than commission. Infrastructure in the country is yet to reach rural masses, and power generation and supply continue to lag behind demand by close to two decades. If these challenges are not met urgently and economically, the dream of being the world’s fastest growing economy may remain just that.
http://testfunda.com/examprep/mba-resource/current-affairs/article/will-india-become-the-worlds-third-largest-economy-in-2012.htm?assetid=00da202e-977c-4754-b077-d53640eecf99
