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India Projected to Surpass China in Global GDP Share by 2060

Business Standard•Jun 4, 20261 min

In a Nutshell

A study by the World Inequality Lab indicates that India may exceed China in global GDP share in purchasing power parity (PPP) terms by 2060, driven by sustainable growth and reduced inequality.

Key Points

01The study is conducted by the World Inequality Lab.
02India's potential to surpass China is based on a 'sustainable convergence' scenario.
03Key factors include faster growth in developing economies and lower inequality.
04Investment in human capital is crucial for this projection.
05The timeline for this shift is estimated around 2060.

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Full Summary

According to a study from the World Inequality Lab, India is projected to surpass China in the share of global GDP in purchasing power parity (PPP) terms by 2060. This forecast is based on a 'sustainable convergence' scenario, which emphasizes the importance of faster economic growth in...

Key Figures

2060

Projected year India may surpass China in GDP share

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Why It Matters

If India surpasses China in GDP share, it could lead to significant shifts in global economic power and investment strategies.

Who is affected

Economists, policymakers, and investors in both India and China.

What to know

Focus on policies that promote economic growth, reduce inequality, and enhance education and skills training.

FAQ

Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a market 'basket of goods' approach.

In this context, 'sustainable convergence' refers to a scenario where developing economies grow faster while reducing inequality and improving human capital investment.

World Inequality Lab

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