In a crystal ball moment, the Organisation for Economic Co-operation and Development (OECD) said the combined gross domestic product of China and India was likely to exceed that of all the current Group of Seven rich economies by around 2025. China’s economy is likely to overtake the euro zone’s this year, while India is ready to leapfrog Japan by 2030.
China, currently the world’s second-largest economy, is forecast to grow at an average pace of 6.6 percent from now till 2030, and 2.3 percent from 2030 to 2060. The projections for India, the 10th largest, are 6.7 percent and 4 percent, respectively.
The projections released by the OECD, stand on numbers crunched according to 2005, purchasing power parities (PPP), reality today is however slightly different. Both nations have been hit with a slew of political, social and economic considerations which have knocked at their knees, which is why estimates by Goldman Sachs reckon the BRICs quartet of Brazil, Russia, India and China will overtake the G7 only by 2037.
Over the next few years, the two Asian giants will see their per capita income increase more than seven-fold, providing a big lift for the living standards of the average Chinese and Indian, the bloc added. This will be more pronounced in China because of the strong productivity growth and high capital investment compared to India. Yet, both nations will need to to substantially increase educational and healthcare treatments for their people in order to truly alleviate standards of living.