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Indian Economy

India to Overtake US by 2030

  • 23 Jul 2018
  • 2 min read
  • 10 Asian economies including India will overtake the US in terms of GDP by 2030, according to a report by global financial services major DBS.
  • These economies are expected to see robust growth and will cross $28 trillion mark in real GDP terms on aggregate, more than that of the U.S., whose economy will amount to $22.33 trillion by 2030.
  • The Asia-10 include China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
  • However, this is neither a sufficient nor a necessary condition to invest in Asia, as investing cannot be based on a single indicator, especially when it comes to a long-term horizon.

The report has highlighted three major concerns:

  • Trade war:
    • The rise of protectionism may reduce investment flow in the region as Asia is one off the most externally exposed regions.
  • Demographic dividend:
    • The report also said that the Asian countries may have benefited in the past from the demographic dividend, but it’s not such valuable now.
  • Employment:
    • A young population creates a “challenge” in terms of generating jobs, in absence of which there will be high levels of unemployment, creating both an economic and social/political challenge.
    • Apart from above three, these economies also face some common issues like climate change, rising inequality, worsening environment for trade, and technological disruption.
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