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    India set to topple Japan as world's 3rd largest economy by 2030: HSBC

    India set to topple Japan as world's 3rd largest economy by 2030: HSBC

    India set to topple Japan as world's 3rd largest economy by 2030: HSBC
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    By CNBC-TV18  IST (Published)

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    India will overtake countries like Japan, Germany, the UK and France to become the world's third largest economy by 2030 on account of the economy’s rapid growth and a rising working-age population that's the envy of an aging developed world, according to HSBC estimates.

    India will overtake countries like Japan, Germany, the UK and France to become the world's third largest economy by 2030 on account of the economy’s rapid growth and a rising working-age population that's the envy of an aging developed world, according to HSBC estimates.
    The South Asian giant was seen as “among the most striking” gainers in the bank’s long-term rankings while China will topple the US to become the world’s largest economy by 2030.
    "The model correctly projected that the likes of China, India, Indonesia and the Philippines would outperform their emerging market peers and that developed market growth would remain much more subdued," economists Janet Henry and James Pomeroy said in the report dated September 25.
    According to the report titled 'The World in 2030', young populations with higher growth in working-age population growth will have a greater share of the population that is of working-age over the next decade or so, helping to lift per capita growth rates, not just total growth rates.
    "As these young people age (up to about aged 55 according to UN studies), they should become more productive, particularly as education rates continue to rise across the emerging world," said the report.
    HSBC estimates showed that over the coming decade or so, roughly 70 percent of global growth will be from countries we currently describe as emerging.
    "As these countries develop and the nature of growth becomes more domestically oriented and consumer-led, such as we are seeing in China, the influence on developed markets will rise," the report said.
    The advance of China and India is the big story, but there are a number of other messages. One is that the US will continue to pull ahead of the rest of the developed world. Another is that India’s neighbours, Pakistan and Bangladesh, will also shoot up the rankings.
     
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