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This will not be the case in 2050 as per capita incomes of China and India will still be less than half of USA.
· Large but not so rich population of China and India will keep demand for Consumer Goods and Commodities very high. The threshold income after which demand explodes is US$3000/annum. Almost 2bn people will join this income threshold in the next few years.
· As Per Capita Income rises, Exchange Rate converges to Purchasing Power Parity (PPP). For e.g., per capita income of Pakistan on exchange rate basis is close to US$900 but on PPP basis is US$3000. This gap will narrow with rise in per capita income on exchange rate basis, as the prices of goods in services in Pakistan will be closer to those in USA...
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