India To Be Third Largest Importer By 2050: UK Report
According to a new report brought out by the UK’S Department of International Trade, India is going to become the world’s third largest importer until the year 2050. Currently, it is poised on the eighth position. It will have a 5.9% share of global imports, following China and the United States (US).
The report also says how the purchasing powers of the Indian middle class is going to rule the import demands in the country. For starters, the US’s and EU share of most import sectors is therefore expected to decline out to 2030.
One will see a dramatic change in the food, travel and digital services sectors where larger and increasingly wealthy populations in the Indo Pacific are expected to consume more discretionary goods and services.
Growth share of imports will continue to move towards the Indo-Pacific. The report states that this trend has picked up in 2019 and is going to keep going up till 2050; this shows a 56 percent of global growth. Compared with a quarter from the EU and North America combined, this is a huge jump. Growth within the Indo Pacific is also expected to rebalance over time, with South Asia’s contribution (driven by India) rising.
The report further said that China is going to be a major reason for these shifts in import demands as it is going to become the world’s largest economy ending 2030. The ‘E7 group‘ comprises seven largest emerging economies. These include China, India, Brazil, Russia, Indonesia, Mexico and Turkey. All these nations are expected to equal the G7‘s share of global import demand by 2050. The E7 grouping as such comprises seven richest nations of the world, including the US, UK, Canada, France, Germany, Japan, and Italy.