GLOBAL GROWTH 2020
India share in global growth will be 12.2% by the year 2020. Study shows India will create maximum jobs to rival bigger European markets. The next fifteen years will see significant advances being made by Asia and particularly the powerhouses of India and China in gross domestic product (GDP), wages and consuming power which is already predicted.
Now another new prediction regarding Indiaâ€™s growing importance in monetary terms says that the country will contribute 12.20 % to global economic growth by 2020.
Revealing this in a study titled â€˜Foresight2020â€™ the Economist Intelligence Unit (EIU), a 60-year-old provider of country, industry and management analysis also said that a whopping
$1 trillion will be jointly contributed by India, China and the US to the global economy by the year 2020.
EIU surveyed 1,656 executives from 100 countries and conducted in-depth interviews with executives, analysts and policy makers in late 2005. The study reiterates Indiaâ€™s position as one of the fastest growing economies.
By 2020, the country as trading nation will record the biggest jump in world ranking from 24th to 10th and Indiaâ€™s share in the global GDP will rise from 6.2 % in 2005 to 8.8 % in 2020.
India to top in Job Market:
Developing Asia will account for two-thirds of the increase in employment growth, with India alone making up 30 % of the net increase in global employment with 142 million new jobs the highest globally.
Let us look at some interesting figures showing the present position and by the year 2020
Others are way behind in the 471 million net new workers by 2020 â€“ China will have 65 million, the United States 12.5 million new workers while the European Union experience a growth of just 8.4 million workers.
Worldâ€™s consumer spending will expand at an annual rate of 5.6 % to $62 trillion by 2020, compared to $27 trillion today.
Though US will continue to be the largest consumer market, China will emerge as the worldâ€™s second largest consumer market and India will rival the bigger European markets.
Indianâ€™s share in world consumer pending will increase from 1.9 % in 2005 to 3.1 % in 2020.
Information Technology not to be a great propeller:
Indiaâ€™s growing integration with the global economy and its favorable demographics are likely to ensure a sustained rate of growth of 5.9 % a year in 2006-20.
However, Indiaâ€™s much-discussed IT sector accounts for too small a share of GDP to be a long term driver of growth. Much more will depend on the modernization of the countryâ€™s agriculture and manufacturing.
By 2020, Chinaâ€™s GDP (at PPP) will have matched the US and the EU.
Indiaâ€™s GDP will have overtaken or be on the threshold of overtaking the biggest European economies.