India’s economy is expected to grow at 7.5% this year and the next, surpassing China’s estimated 6.8% and 6.3% for 2015 and 2016, respectively. In 2014, India’s growth rate was 7.2% against China’s 7.4%, according to the World Economic Outlook released by the International Monetary Fund.
The sharp upward revision in the IMF’s growth forecast for India—by 1.2 percentage points for this year and 1 percentage points for 2016 as compared to its January 2015 update—comes at a time when the global economy is expected to grow 3.5% this year, and 3.8% in 2016, a tad 0.1 percentage points higher than its January projection. In 2014, global growth was 3.4% because of a pick-up in economic activities in advanced countries; and emerging market and developing economies, despite the slowdown, still accounted for three-fourth of global growth.
The increase in global growth from here will be driven by a rebound in advanced economies and further supported by the decline in oil prices.
In emerging markets, in contrast, growth is projected to decline in 2015, reflecting downward revisions for oil exporters and a slowdown in China.