According to the UK multinational bank Standard Chartered, China is likely to become the world’s largest economy by 2020, with India overtaking the USA and moving into second place by 2030.
In its report, the UK bank suggests that: “India will likely be the main mover, with its trend growth accelerating to 7.8% by the 2020s” . It recognizes that ageing populations are likely to weigh on global growth, but India, home to the world’s largest group of young people, will remain unfazed. Half of the country’s population is under the age of 25.
However, a young demographic also creates a demand for massive employment. The report suggests that to achieve this, about 100 million new jobs must be created in the manufacturing and service sectors by 2030. This can be done through closing a widening skills gap, raising the participation of women in the workforce, and easing labour laws. New spending will also be required to improve infrastructure and reduce the growing economic inequality in the country.