China-India combine set to dwarf G7 in 50 years: OECD

The emerging economies of China and India will overtake those of the US-Eurozone-Japan combined as the balance of economic power shifts dramatically over the next half century, the Organisation of Economic Cooperation and Development (OECD) said in a new report.

The combined output of China and India in 2010 was less than half the G7's GDP.

China's economy is set to overtake that of the United States as the world's largest economy as early as 2016 while India's GDP is expected to pass that of the United States over the long term, OECD said in its report.

Combined, the two Asian giants will soon surpass the collective economy of the G7 nations. Rapidly ageing economic heavyweights, such as Japan and the euro area, will gradually lose ground on the global GDP table to countries with a younger population, like Indonesia and Brazil, according to the report.

China will have the highest growth rate among all countries studied until 2020, after which India and Indonesia will take over as China's working-age population rapidly declines.

China with its jump-start will, however, continue to hold a productivity edge over India thanks to intensive investment in the past decade.