(MENAFN) According to a recent report by Bloomberg, India is on track to potentially surpass China as the leading driver of global economic growth in the coming years. The report highlights India's significant demographic advantage, with its population of 1.4 billion emerging as a key factor propelling its economic expansion.
Bloomberg Economics conducted an analysis projecting that India could claim the title of the world's top contributor to global growth on a purchasing power parity (PPP) basis as early as 2028. PPP analysis adjusts for variations in the cost of goods and services across countries, providing a more accurate comparison of economic productivity and living standards.
While China has long been recognized as an economic powerhouse, with a USD17.8 trillion economy, the report suggests that its growth momentum is decelerating. Factors such as the lingering effects of the Covid-19 pandemic and increasing economic tensions with the United States and its allies have contributed to this slowdown. Additionally, Western nations are increasingly viewing China as a competitor rather than a strategic economic partner.
China's economic growth rate is projected to decrease to 3.5 percent by the end of the decade, down from 5.2 percent in 2023. This shift has prompted various countries and businesses to seek alternatives to China for their supply chains, with India emerging as a favorable destination for investment and production.
In contrast, India is experiencing robust economic growth, with one of the fastest-growing economies globally. Bloomberg Economics forecasts that India's growth rate could accelerate to 9 percent by the end of the decade, up from an estimated 7.6 percent in the fiscal year ending March 31. Key sectors such as electronics manufacturing and aviation are driving this growth, signaling promising opportunities for further expansion and development.
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