India will lead the world in terms of fastest growing economies till 2025 with an average annual growth of 7.7 per cent, a Harvard research has predicted.
A study by the researchers at the Center for International Development at Harvard University (CID) says that India has emerged as the economic pole in the world due to diversification into complex sectors such as chemicals and vehicles.
The study says that growth in emerging markets is predicted to continue to outpace that of advanced economies, though not uniformly.
The study attributed India's rapid growth prospects to the fact that it is particularly well positioned to continue diversifying into new areas, given the capabilities accumulated to date. "India has made inroads in diversifying its export base to include more complex sectors, such as chemicals, vehicles, and certain electronics," the report said, quoting from the growth projections.
"The major oil economies are experiencing the pitfalls of their reliance on one resource. India, Indonesia and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years," the report added.
CID said that in examining the latest 2015 global trade data, they found a clear turn in trade winds, as 2015 marks the first year for which world exports have fallen since the 2009 global financial crisis.
Harvard University’s CID is a university-wide centre working to understand and advance the development challenged faced around the world and provide a viable solution to problems of global poverty.