India has the potential to be the fastest growing large economy in the world in the period to 2050, with a GDP close to 60% of the US at market exchange rates in 2050, similar in size to the US in PPP (purchasing power parity) terms, according to a just-released PricewaterhouseCoopers study The World in 2050.

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The E7 economies (China, India, Brazil, Russia, Indonesia, Mexico and Turkey) will be around 25% larger than the current G7 (US, Japan, Germany, UK , France, Italy and Canada) when measured in dollar terms at market exchange rates or around 75% larger in PPP terms by 2050. The E7 is currently only around 20% of the size of the G7 at market exchange rates and around 75% in PPP terms.

However, both China and Russia are expected to experience significant declines in their working age populations between 2005 and 2050 in contrast to relatively younger countries like India, Indonesia, Brazil, Turkey and Mexico, whose working age populations are likely on average to show positive growth over this period, although they too will begin to see the effects of ageing by the middle of the century.

China and India will become increasingly competitive in tradable services like banking and other financial services.