India larger than the UK

Based on article from The Independent, 4 February 2007

The Tata takeover of the Anglo-British steel firm, Corus is an event which represents India's rising influence in the world. With the rise of the BRICs and other emerging economies, there is an apparent shift in the economic power towards the "new" economies.

India may be bigger than the US by about 2045 and could be bigger than the UK in less than 10 years. But if you look at the long view of economic power from AD 0, it is easy to see that the world was dominated by China and India, and only until recently with the Industrial Revolutions did the US and Europe take off.

Britain has forged good relationships with India and China. Indian industrialists find Britain very open to entrepreneurs and Britain is educating lots of Chinese students. However, UK companies find it much harder to buy foreign companies. Despite this, Britain gains more from its foreign investments than it loses from dividends and interest payments, which has contributed to the surpus in the investment account.

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India will have a larger economy than the UK in a decade. That is wonderful news - The Independent