London, March 4:

The Indian economy — with an average annual growth rate of 7.6 per cent — will have the fastest growth rate among all major economies of the world in the next 50 years, according to a report by global consultancy firm PricewaterhouseCoopers (PwC). PwC said India, which is forecast to have the fastest growth rate in its working-age population among major economies, had the potential to be the fastest-growing eco-nomy in the world, overtaking China. It reported that the G-7 group of rich nations was likely to be overtaken by an E-7 bloc — comprising the emerging economies of India, China, Brazil, Russia, Indonesia, Mexico and Turkey.

In US dollar terms, India would grow by an average of 7.6 per cent a year between now and 2050, with Indonesia at 7.3 per cent and China at 6.3 per cent, according to John Hawksworth, the head of macroeconomics for PwC, who wrote the report. The report examined long-term demographic trends to suggest that countries such as Mexico, Indonesia, Brazil and Tur-key all have young and fast-growing populations compared with Britain and continental Europe, putting them in line for significantly higher long-term growth rates.

On a purchasing power parity measure, which adjusts GDP by the cost of living in each country, China will be 43 per cent larger than the US by 2050 and India will be the same size, according to the PwC forecasts.

The report stated the fourth-biggest economy in the world would be Brazil, followed by Japan, Indonesia and Mexico. Germany and Britain would drop to joint eighth place, down from third and fifth today.

However, Hawksworth said Britain should see being overtaken by these economies as an opportunity, and not a threat. He said, “UK companies need to factor these projections into their future planning to ensure they are best placed to take advantage of these opportunities.” The report stated people with low or medium-level skills would come under threat — both from having their jobs moved ove-rseas and having them taken by migrant labours. Eventually, even high-skilled professionals such as lawyers and accountants could find their livelihoods under threat from increasingly well-qualified citizens of the E-7 countries.