The Asian Development Bank, ADB, today projected India's growth rate to surpass China and improve to 7.8 per cent in 2015-16. It also forecast in 2016-17, India's growth rate would be 8.2 percent.
India's growth and investor confidence will improve on the back of government's structural reform agenda and improved external demand, the Asian Development Outlook (ADO), an annual publication of the ADB, said. As regards China, the ADB projected the economic growth to decelerate from 7.4 per cent in current fiscal to 7.2 percent next fiscal and 7 per cent in 2016-17.
ADB Chief Economist Shang JinWei said, India is expected to grow faster than the People's Republic of China in the next few years. The government's pro-investment attitude, improvements in the fiscal and current account deficits, and some forward movement on resolving structural bottlenecks have helped improve the business climate and make India attractive again to both domestic and foreign investors. He, however, cautioned that although the economic prospects look promising, there are still many challenges.
The ADB said that strong growth outlook is contingent on further acceleration in investment activity. It said the measures undertaken by the government including accelerating environment clearances for infrastructure projects, easing the process of land acquisition for infrastructure and industrial corridors and allowing auction of Coalmines to the private sector would help boost growth.