PwC - India to emerge 3rd largest credit market

he country could emerge as the third-largest domestic credit market in the world after United States and China by 2040, and, in the long run, could grow faster than China, said a PricewaterhouseCoopers (PwC) report on the banking sector by 2050.

While, India’s domestic credit is projected to grow from relatively low levels of $0.4 trillion in 2004 to $23 trillion in 2050, China’s credit market is set to expand from $2.8 trillion to $45 trillion over the same period, according to the report.

The total domestic credit in China could overtake the United Kingdom and Germany by 2010, Japan by 2025 and the US before 2050.

However, India is likely to be the fastest growing among the emerging economies (E7) of China, India, Brazil, Russia, Indonesia, Mexico and Turkey in the long-run.

“The model suggests that while China will continue to grow somewhat faster than India over the next 5-10 years but, after that, China's growth will be held back by its rapidly ageing population (due in large part to its one child policy) and diminishing returns to its investment-led strategy. In contrast, India and other emerging economies have much younger populations with faster-growing labour forces,” Jairaj Purandare, executive director, PwC, said