China’s days as the globe’s most exciting economy are numbered.
That’s because while China’s workforce has already begun to shrink, in part as a result of the country’s one-child policy, its neighbor to the West, India, is growing its workforce at a breakneck pace.
According to Ernst and Young, the Indian workforce will grow to 900 million strong by 2020. To put that in perspective, the American workforce, which is the third largest in the world, comes in at just under 160 million people.
Because economic growth results from the combination of capital goods, like factories and computer systems, with labor, a growing labor force can be a huge boon for an economy. At the same time, the Indian government must also train its workforce effectively and build the necessary infrastructure to help its economy flourish. According to CNNMoney:
If India can successfully transform its human resources into productive workers, you can expect it to quickly replace China as the economy that both inspires fear and respect among American economy watchers.