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Published on September 22, 2004


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Date Published September 22, 2004

The world economy has changed a lot over the past 50 years, over the next 50, the changes could be at least as dramatic. As per Goldman Sachs recently published report on Global Economics; Brazil, Russia, India and China – BRICs economies could become much larger force in the world economy. Over the next decades, the growth generated by large developing countries particularly BRIC could become a much larger force in the world economy than it is now and much larger than many investors currently expect. India’s economy for instance, could be larger than Japan’s by 2032 and China’s larger than the US by 2041 (and larger than everyone else as early as 2016). The BRIC economies taken together could be larger than the G6 by 2039, by 2025 they could be account for half of the size of G6 economy. India has the potential to show fastest growth over the next 30 and 50 years. Growth could be higher than 5% over the next 30 years and close to 5% as late as 2050 if development proceeds successfully. This report also highlighted some of the most striking results. Today India is one of the fastest growing economy. Average GDP growth is over 5% between 1995-2001 and despite global economy downturn in 2002 the growth remained at 4%. Despite the downturn the government target for growth rate remains 8% for the for the 10th five year period 2002-2007. Over the past five years industrial production growth has averaged 5% while service sector growth has averaged 8%. Real hot spot was IT sector which grew by 30% in last three years and during the same period inflation held at less than 3% with nation’s currency remaining stable.