Rise of China most dramatic economic phenomenon since 1992: EAC-PM
Last Updated:July 16, 2026, 18:45 ISTRepresentational image (Image: News18)New Delhi, Jul 16 (PTI) The rise of China is the most dramatic economic phenomenon since 1992 as it now accounts for almost 20 per. . .
Last Updated:July 16, 2026, 18:45 ISTRepresentational image (Image: News18)New Delhi, Jul 16 (PTI) The rise of China is the most dramatic economic phenomenon since 1992 as it now accounts for almost 20 per cent of the world’s GDP in purchasing power parity, and 30 per cent of the world investment, the Economic Advisory Council to Prime Minister (EAC-PM) said in a working paper. The EAC-PM in the paper titled ‘The World in Purchasing Power Parity (Trends since 1992)’, further said even if China’s per-capita income is still lower than that of developed countries, the sheer magnitude of China’s share in the world economic system is remarkable. Recommended StoriesIn contrast, India’s rise has been notable with it accounting for 8. 2 per cent of world GDP in 2025, and more than 10 per cent of the world’s savings and investment. The IMF expects India’s share of the world economy to rise to 9. 7 per cent by the end of the decade, it added. The working paper has been authored by EAC-PM member Sanjeev Sanyal along with Aakanksha Arora and Payal Sharma. Purchasing power parities (PPPs) are the rates of currency conversion that aim to equalise the purchasing power of different currencies by eliminating differences in price levels between countries. According to the paper, the US continues to hold a very large share of the world economy, even though it is now in the second position after China. It said although the relative per-capita income of the US has declined, it is still more than three times the world average. Its share in the world investment and savings has also declined but remains very substantial, the paper said. Meanwhile, relative shares of major European countries have sharply reduced on four indicators of the paper. Even though the relative per-capita income of these economies has declined during the period of study, Europeans were still relatively rich compared to the world average even in 2025, it said. While most papers regarding relative economic performance of countries deal with either nominal or real GDP, this paper focuses on four indicators of relative long-term economic performance in Purchasing Power Parity (PPP) terms: share in world GDP, relative per-capita income, share in world savings and share in world investment. In 1992, the US was the largest economy accounting for one-fifth of the world’s GDP in PPP terms. Japan was a distant second with a share of 8. 2 per cent, followed by Germany (6 per cent), and Russia (4. 9 per cent). China accounted for a mere 4 per cent share in the world economy in 1992. Following decades of rapid growth, China surpassed the US and now accounts for one-fifth of world GDP; the same position as the US in 1992. Nonetheless, despite the decline in its share, the US still accounted for 14. 6 per cent of world GDP in 2025. India is now the third largest economy in PPP terms with a share of 8. 5 per cent of the world economy. PTI BKS BKS ANU ANU(This story has not been edited by News18 staff and is published from a syndicated news agency feed -PTI)News18 NewsletterHandpicked stories, in your inboxA newsletter with the best of our journalismKey Questions AnsweredChina's economic dominance is causing global unease and reshaping trade relations. Policymakers are debating rising trade imbalances and risks of supply-chain dependence on China. First Published:July 16, 2026, 18:45 ISTNewsagency-feedsRise of China most dramatic economic phenomenon since 1992: EAC-PMDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to ourTerms of UseandPrivacy Policy. Loading comments. . . Read More