Tracking the shift in global economic activity: From Asia to the West, and back to Asia

When India kicked off reforms in 1991, few thought its economy would one day grow at a rate second only to China’s.
But, amidst the current gloom about the economy, it is hard to imagine that India dominated the global economy for as long as a millennium and a half.

ET follows the shift in the centre of gravity of global economic activity — from Asia to the West, and back to Asia:





ECONOMIC CENTRE OF GRAVITY SHIFTING BACK TO ASIA...

The shift in economic balance is a result of urbanisation. Migration from rural areas and the consequent expansion of cities boosted incomes and caused a shift in economic power for 300 years.

In the 18th and 19th centuries, migrant workers underpinned the industrial revolutions of the West. The same rapid urbanisation is now happening in the developing world.

What is dramatically different is its unprecedented size and scale, though region-wise urbanisation is progressing at different speeds. For instance, Latin America is in a relatively mature phase, China is right in the middle while India is in the early stages of that process.