The Indian economy will grow faster than most major global economies over the next 12 years to become the 3rd biggest economy, behind China and the USA.
According to a report by HSBC, India which is currently the 6th biggest economy globally, will push Japan and Germany one place lower.
The main reason for the country's growth will be its double demographic dividend, being a highly populated country with a large proportion of youths. India is also on course to be the world’s most populated country by 2022.
Even with the rapid growth however, the total size of the Indian economy will just be a fraction of the world’s biggest two economies. The report forecasts the Indian GDP to stand at close to $6 trillion, while China and the US will be at $33.7 trillion and $32.6 trillion respectively.
China which is currently the world’s second-biggest economy, will overtake the U.S. to become the world’s largest, though the rate of growth may slow down slightly.
The US will move to the second spot but will still grow faster than the rest of the developed world, due to a relatively young population. On the other hand, demographically-challenged economies of Europe will slide down the rankings; Austria and Norway will be outside the top 30 by 2030, with Denmark below the top 40.
The study also found that emerging economies will count for half the world’s GDP a significant increase from the current 40%. Growth in both emerging and developing markets between now and 2030 will slow.
Emerging economies are projected to grow by 4.4% a year compared to 4.7% in the period since 2010, while developed countries will grow by 1.5%, compared with 1.7% growth since 2010.
The biggest regional mover will be Africa, where young, fast-growing populations will mean that the continent has more people aged 16 to 64 than China by 2030.