India to be world's largest economy by 2050: Citi report
23 Feb 2011
Through sustained growth India is expected to overhaul both the United States and China to become the world's largest economy by 2050, says a Citi report.
"China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050," financial services group Citi said in the report.
Citi's estimates are based on purchasing power parity (PPP) instead of the prevailing exchange rate conversion. The PPP is an economic growth indicator that takes into account the purchasing power of each country's currency.
Indian economy is expected to be nearly $85.97 trillion on PPP basis by 2050, up from $3.92 trillion in 2010, Citi said.
The report says India would surpass the US – currently the world's largest economy – to become the second largest by 2040.
"We expect India to overtake Japan to become the third largest economy in the world by 2015," it noted.