The Indian economy is expected to overtake the US by 2040 in PPP terms.
The global economic order is expected to shift from advanced to emerging economies over the next few decades.
By 2040, India could edge past the US to become the world's second largest economy in purchasing power parity (PPP) terms, as per a PwC report.
According to PwC, E7 economies comprising Brazil, China, India, Indonesia, Mexico, Russia and Turkey would grow at an annual average rate of almost 3.5 per cent over the next 34 years.
This is compared to just 1.6 per cent for the advanced G7 nations of Canada, France, Germany, Italy, Japan, the UK and the US.
In fact, China has already overtaken the US to become the world's largest economy in PPP terms, while India currently stands in third place and is projected to overtake the US by 2040 in PPP terms.
PwC believes Vietnam, India and Bangladesh would be three of the world's fastest growing economies over this period.
We will continue to see shift in global economic power away from established advanced economies towards emerging economies in Asia and elsewhere.
The E7 could comprise almost 50 per cent of world GDP by 2050, while the G7's share declines to only just over 20 per cent.
To realise this growth potential, emerging market governments need to implement structural reforms to improve macroeconomic stability, diversify their economies away from undue reliance on natural resources (where this is currently the case), and develop more effective political and legal institutions.
Challenges include falling global trade growth, rising income inequality within many countries and increasing global geopolitical uncertainties are intensifying the need to create diversified economies.
This create opportunities for everyone in a broad variety of industries.
