India may overtake China as the world’s fastest growing major economy by 2015, as the South Asian nation doubles infrastructure investment and adds six-fold more workers than its northern neighbor, Morgan Stanley said.
India to to Top China as Fastest Growing Economy by 2015.
India’s growth may hit 9.5 %
India’s growth may accelerate to 9.5 percent between 2011 to 2015, Morgan Stanley economist Chetan Ahya said in an interview from Singapore today. India’s gross domestic product has expanded at an average 7.1 percent over the decade through the third quarter of 2009, compared with 9.1 percent in China, which surpassed Japan as the second-largest economy last quarter.
$1 Trillion to be spent in India
Prime Minister Manmohan Singh’s government plans to double spending on roads, ports and power plants to $1 trillion in the five years to 2017 to improve the quality of infrastructure that’s ranked below war-ravaged Ivory Coast and Sri Lanka. An increasing number of people joining the workforce and rising salaries will also help boost growth, Ahya said. Thi is sure to offer a huge boost to property and real estate in India.
Within the next two years, India will start matching China’s growth rate, Ahya said. After that “there will be a clear divergence of growth rates between the two countries,” he said.
India will add 136 Million workers by 2020
Japan’s nominal gross domestic product for the second quarter totaled $1.288 trillion, less than China’s $1.337 trillion, the Japanese Cabinet Office said today. Japan remained bigger in the first half of 2010, the government agency said. India will add 136 million workers, more than the population of Japan, by 2020 compared with 23 million that China will add, Ahya said. That will help the nation tap into a rising pool of savings and help finance infrastructure projects, he said.
Tags: China, india, Morgan Stanley, property in India
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