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IMF Report: India to Grow Faster than China in 2016
Jan 30, 2015

India is projected to become the world’s fastest-growing major economy by 2016-17—the third year of the Narendra Modi government—with a growth rate of 6.5%, topping China’s 6.3%. This projection is made by the International Monetary Fund (IMF) in its latest World Economic Outlook Update, released on 20 January. Similar projections by the World Bank on 14 January that said India will grow at 7% in 2017-18, a tad higher than China’s 6.9%.

Key Points

  • In 2014, India's was 5.8 per cent against China's 7.4%.

  • India's growth rate in 2013 was 5% as against China's 7.8%.

  • India is projected to grow at 6.3% in 2015 and 6.5% in 2016, when it is likely to cross China's projected growth rate of 6.3%.

  • Global growth will receive a boost from lower oil prices, which reflect to an important extent higher supply.

  • Global growth in 2015–16 is projected at 3.5% and 3.7%, a downward revision of 0.3% relative to the October 2014 World Economic Outlook.

  • The revision reflect a reassessment of prospects in China, Russia, the Euro area and Japan as well as weaker activity in some major oil exporters because of the sharp drop in oil prices.

  • The United States is the only major economy for which growth projections have been raised.

  • The US is projected to grow 3.6% in 2015 and 3.3% the next year. US is the largest importers of India's goods.

  • Eurozone, the largest destination of India's merchandise exports, was projected to expand 1.2% in 2015 and 1.4% next year.

  • It should be noted that the Euro zone economy contracted 0.5% in 2013 and was projected to recover to 0.8% growth in 2014.


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