India can be largest economy till 2050-60: Economics Professor

Kolkata, Sept 7 (Calcutta Tube / IBNS) India would become the largest economy in the world between 2050-60, said a leading professor of Economics from Japan.

A comprehensive study and research by Prof. Shujiro Urata , Professor of Economics, Graduate School of Asia-Pacific Studies ,Waseda University made the claim.

Urata was attending a conference recently in Kolkata here jointly organised by Consulate General of Japan and Confederation of Indian Industry (CII), Eastern Region.

On account of the Comprehensive Economic Partnership signed between (CEPA) this year between India and Japan a huge market for both countries opened up, Mitsuo Kawaguchi, Consul General of Japan, said.

The bilateral trade under Free Trade Agreement (FTA) eliminates tariffs, so that both can access barrier free market.

“The bilateral trade between both countries will touch $20 bn which was $4 bn in 2001 and $13 bn in 2008,” said the Consul General.

“But, this is still below potential. India can access Japanese market as well as technology for economic prosperity,” he said.

He also emphasized on declining population of Japan a major concern for sluggish performance.

More than 25-30% of population is old and huge burden is on younger generation, which is entirely opposite to East Asian countries, he said.

Japan’s shares of parts and component in total trade (parts and component and products of other characteristics) are high for electrical machinery (74.4%) and general machinery (42.4%) while the corresponding average for all product was 28.9%.

China’s export surpassed Japan in 2004 and reached maximum at $1200bn in 2009 whereas Japan’s export was $ 600bn.

So their trade GDP ratio was merely 30% in 2009 compared top China’s 45%. The main reason is that they are not interested in Region Production Network (RPN),” the expert said.

(Reporting by Pratik Singh)