New Delhi: According to predictions by a PricewaterhouseCoopers (PWC) report, the size of India's economy would swell to 90 per cent of that of the US by 2050, while China would be even larger than the US economy, having overtaken it as the largest economy in the world in around 2025. The sale of China's economy would have most probably increased to 1.3 times of the US economy by 2050.

According to PWC's head of macroeconomics, John Hawksworth, India could grow to almost 90 per cent of the size of the US by 2050. The study places India at the top of the GDP growth table, ahead of China, which is likely to slow down till 2050, and represents a reflection of the country's working age population, which is projected by the UN to continue to grow at a healthy rate unlike China's, which shall age by comparison.

The report titled "The World in 2050: Beyond the BRICs", says long-term prospects for China, India and the other so-called E7 economies (Brazil, Mexico, Russia, Indonesia and Turkey) are still upbeat. However, another 13 emerging economies also have the potential to grow significantly faster than the Organisation for Economic Co-operation and Development (OECD) countries. The study says that there is greater scope for productivity and education levels to rise across the Indian population, which will enable India to catch up with members of the OECD.

The study says that the global centre of economic gravity is already moving to large emerging economies such as China and India. PWC's analysis seems to suggest that this process has a lot further to run, with projections suggesting that China could overtake the US in around 2025 to become the world's largest economy, and continue to grow to around 130 per cent of the size of the US by 2050.

PWC's study projects that Brazil was likely to overtake Japan by 2050, securing fourth place, while Russia, Mexico and Indonesia have the potential to enlarge their economies to sizes bigger than that of Germany or the UK by around the same time.

PWC says that the real economic growth in China from now till 2050 will average 6,8 per cent per annum, where as it would average 9.8 per cent for Vietnam, and 8.5 per cent for India. The study suggests that one of the fastest movers could be Vietnam, which has a potential growth rate of almost 10 per cent per annum, in real dollar terms. PWC says that could push it up to around 70 per cent of the size of the UK economy by 2050.

PWC's report says reducing the mounting pressure on energy consumption and carbon emissions is one of the most important challenges posed by rapid growth of the emerging economies, and indicates that Nigeria would be set to take the number one position in Africa's biggest economy, dethroning South Africa. It says that the rise of the middle class in these economies holds promise for foreign retailers, energy and utility companies, health-care and media. However, global mass market manufacturers will not get any respite from the increased competition coming from China and other new low-cost competitors like Vietnam.

The report speculates that in the long term, perhaps India could displace China gradually, if it would be able to create the right political and economic preconditions for manufacturing investment.