According to latest World Bank figures, India may officially surpass China in its growth rate as it is now leading major emerging economies in the growth chart.
“With an expected growth of 7.5 per cent this year, India is, for the first time, leading the World Bank’s growth chart of major economies,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President after the release of the latest Global Economic Prospects (GEP) report yesterday.
On the other hand, China is projected to grow at 7.1 per cent. Developing countries are now projected to grow by 4.4 per cent this year, with a likely rise to 5.2 per cent in 2016, and 5.4 per cent in 2017, the report stated.
In China, the carefully managed slowdown continues, with growth likely to moderate to a still robust 7.1 per cent this year. In India, which is an oil importer, falling oil prices have reduced vulnerabilities, which has paved the way for the economy to grow by the rate of 7.5 per cent in 2015, the report said.
Basu clearly mentioned that slowly but surely the global economy is undergoing a gradual shift. “China has avoided the potholes skillfully for now and is easing to a growth rate of 7.1 per cent; Brazil, with its corruption scandal making news, has been less lucky, dipping into negative growth,” he said.