If India can consistently outperform China on GDP growth by 3% per year then should catch up on per capita GDP in about 40 years

HSBC and rating agency Fitch have forecast India’s gross domestic product (GDP) to grow at 8.3 per cent in 2016-17. China is likely to have GDP growth at 6.5-7.0% in 2016 and 2017.

The IMF has China having per capita GDP on a purchasing power parity basis of $13993 in 2015 and India with $6167. China as 2.27 times the per capita GDP PPP than India.

On exchange rate GDP per capita basis China has about $7500 to India’s $1500. China is five times higher than India.

If India outperforms China by a consistent 3% per year, then over 40 years India will catch up on per capita GDP basis. India will have about 1% more population growth, so the overall GDP growth would need to be 4% more than China to get 3% more per capita.

SOURCES – Wikipedia, HSBC, Fitch Rating

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