India to become fatest growing emerging economy in 2015-16 overtaking China

Recent policy initiatives, pick-up in investments and lower oil prices will help India to overtake China as the fastest growing emerging economy in 2015-16 by clocking a growth rate of 7.5 per cent, International Monetary Fund (IMF) said.

While India's growth rate is expected to improve from 7.2 per cent in last fiscal to 7.5 per cent this year and next fiscal, China will witness a deceleration with growth rate sliding from 7.4 per cent in 2014 to 6.8 per cent in 2015 and 6.3 per cent a year after.

IMF said "Emerging market and developing economies also have an important structural reform agenda. These economies can reap productivity gains by easing limits on trade and investment, removing infrastructure bottlenecks (India, South Africa), and improving business conditions (Indonesia and Russia). In other countries (Brazil, India, and South Africa), reforms to education, labor, and product markets can help raise labor force participation and productivity. Finally, lower oil prices offer an opportunity to decrease energy subsidies and replace them with better-targeted programs, as well as reform energy taxation (including in advanced economies)".

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