Underlining the fact that emerging markets are increasingly becoming powerful, a UN report revealed that the combined GDP of BRIC countries ( a grouping of emerging economies including Brazil, Russia, India and China) will surpass the aggregate output of the US and European nations by 2020.
“In fact, by 2020 the combined economic output of three leading developing countries alone that is Brazil, China and India will surpass the aggregate production of Canada, France, Germany, Italy, the United Kingdom and the United States,” says the 2013 Human Development Report prepared by the United Nations Development Programme (UNDP) . BRIC includes Russia as well.
Meanwhile India’s position in Human Development Index was 136 out of 187 countries in 2012. It ranked 134 in 2011. The report mentions, “It is misleading to compare values and rankings with those of previously published reports because the underlying data and methods have changed.”
Delving on the policies of Indian government it said that investing in world-class tertiary education, building human capabilities and opening up to trade and investment allowed India to capitalise on its stock of skilled workers in technology. By 2011-2012 these industries were generating $ 70 billion in export earnings.
“Similar tales can be told for India’s pharmaceuticals, automobile, chemical and service industries now vigorously competing in world markets. The result has been a remarkable change in the economy.” In 2010 India’s trade to output ratio was 46.3%, up from only 15.7% in 1990. However India has averaged nearly five per cent income growth a year over 1990-2012 and per capita income is still low around $3,400 in 2012.
“To improve living standards it will need further growth. And India’s performance in accelerating human development is less impressive than its growth performance,“ the report said.