India can become 3rd largest economy by 2012: PwC

NEW DELHI: The US financial crisis may have expedited a shift in global economic power. According to a report by global consultancy firm Economy PricewaterhouseCoopers (PwC), India could become the world’s third largest economy by purchasing power parity (PPP), overtaking Japan in 2012.

This would be almost 20 years ahead of Goldman Sachs’ projection of 2032 in its BRIC (Brazil, Russia, India, China) report.

India is also expected to grow faster than China after 2020. China, which was projected to become the world’s largest economy by 2041, now looks set to achieve the distinction sometime around 2020, the PwC report said.


‘‘While the exact date is open to doubt, it seems highly likely that, by 2030, China will clearly be the largest economy in the world on PPP,” writes PwC head of macroeconomics John Hawksworth in the report.

ET

Shiv Shankar Menon takes over as NSA

NEW DELHI: Veteran diplomat and former foreign secretary Shiv Shankar Menon on Saturday took over as national security adviser. 60-year-old Menon, who will serve in the rank of minister of state till further orders, took charge from M K Narayanan, who has been appointed as West Bengal Governor.

The 1972-batch IFS officer, who retired as foreign secretary in July last year, brings with him vast experience in diplomacy.

A highlight of his diplomatic career was the key role he played in negotiations for the landmark Indo-US civil nuclear deal that ended India's long isolation in the atomic sector.

After being named as the NSA on Thursday, Menon said he was "very conscious that it is a big responsibility and I will do my best."

Earlier on Saturday morning, Prime Minister Manmohan Singh hosted a farewell lunch for Narayanan, where finance minister Pranab Mukherjee, home minister P Chidambaram, defence minister A K Antony and MoS in PMO Prithviraj Chavan were present.

Singh hailed Narayanan as "one of the finest" civil servants.

He particularly referred to Narayanan's contribution to negotiations on the Indo-US nuclear deal and said it would not have come through without his role.

"His best is yet to come. He is going to Raj Bhavan, which is public service," Singh said.

Narayanan will take over as West Bengal Governor on Sunday.

TOI

BSE Sensex snaps its four-week winning streak

STAFF WRITER 13:0 HRS IST

Mumbai, Jan 23 (PTI) Stocks: The BSE benchmark Sensex snapped its four-week winning streak and dropped by 695 points past week to close below the psychological 17,000 mark on all-round selling pressure following disappointment from key corporate earnings amid a weak trend in the global markets.

Global stocks tumbled after US President Barack Obama on Thursday proposed new restrictions on banks, which would prevent banks or financial institutions (that own banks) from investing in, owning or sponsoring a hedge fund or private equity fund.

Global markets had already recoiled in recent weeks on fears that demand from China would slowdown as Beijing taps the brakes on its roaring growth to stave-off inflation and to keep the economy from overheating.

Also poor show by some of the key corporate houses that announced their Q3 results past week infused selling pressure.