India Expected to Overtake China in Global GDP Share by 2060, Says Report
India to surpass China in share of global GDP by 2060: Report
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A report by the World Inequality Lab predicts that India will surpass China in global GDP share measured by purchasing power parity (PPP) by 2060, as China's economic contribution is expected to decline due to a shrinking population. The report highlights India's current economic growth and the implications for global economic dynamics.
- 01India's GDP is projected to reach approximately USD 4.15 trillion in 2026, while China's GDP is expected to be around USD 20.85 trillion.
- 02China's share of global GDP is currently about 20% in PPP terms, and it is expected to stabilize and decline in the latter half of the 21st century.
- 03The report emphasizes that India has higher inequality compared to China but lower productivity growth, attributed to differences in human capital investment.
- 04China's population share has decreased significantly, from 23% in 1945 to an anticipated 8% by 2100, impacting its GDP share.
- 05The world economy is expected to be multipolar in the 21st century, contrasting with the hegemonic positions held by the US and Europe in previous centuries.
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According to a report by the World Inequality Lab, India is anticipated to surpass China in its share of global GDP measured in purchasing power parity (PPP) by 2060. The report notes that while China's current contribution to global GDP is about 20%, this is projected to decline as its population share decreases from 23% in 1945 to less than 8% by 2100. In contrast, India's economic growth is expected to continue, with its GDP projected to reach approximately USD 4.15 trillion by 2026. The report also highlights that although India has higher levels of inequality compared to China, it experiences lower productivity growth, which can be linked to differences in human capital investment. The findings suggest a shift towards a multipolar world economy in the 21st century, moving away from the historical dominance of the US and Europe.
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India's anticipated economic growth may lead to increased investments and improvements in living standards, while China's declining GDP share could influence global economic policies.
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