India Ratings and Research said in a research report on Monday that Indian economic growth will overtake China’s in 2015 if there is continuous policy intervention from the government. India Ratings in its latest outlook has maintained its FY16 GDP growth forecast of 7.7 per cent.
According to the report, the key challenge facing the Indian economy is infrastructure deficit both physical and social.
The report further said that if the current policy initiatives and efforts of the government are sustained, the Indian economy will gradually return to a higher growth trajectory over two-to-three year period. An economic slowdown in China will help India overtake the former in economic growth.
The reserach report said that recent economic developments in China are bigger issues/concerns for the Indian economy than the Greece issue. The China economy slowdown can bring in both good and bad news for India as exports could be affected due to slower global growth, but lower commodity prices can provide some support.