A recent research by the Mckinsey Global Institute (MGI) supports forecasts by multiple financial services that see India beating the United Kingdom (UK) to become the world's fifth largest economy in the world. MGI also said that the country's GDP (gross domestic product) is poised to become double the size of Canada or Russia in the years to come.
The research revealed Asia is now the centre of global economic activity. "The rise of Asia is happening faster than expected. Fast-followers are already industry leaders. The rural class is already the urban middle class. Asian cities are already international financial centres," MGI said.
McKinsey & Company, in partnership with the MGI, launched a new research-the Future of Asia, which examines how Asia will lead. It examined 71 developing countries in the world, of which 18 have been consistently posting robust economic GDP growth. It also found that all seven of the long term performers and five of the 11 recent out performers are located in Asia.
The research said that the future of the world economy can be understood be understanding Asia. The 21-st century will be characterized by a pivot towards Asia, it said. Business and market leaders will have to set their long-term strategies by getting an accurate picture of what Asia's future will look like.
The MGI research said that the continent is on track to top 50 percent of the global GDP by 2040 and drive 40 percent of the world's consumption. Further, as consumption rises, more of what is made in Asia will be consumed locally than exported to the West.