New Delhi, April 14, 2015: Indian economy is going to grow much faster than predicted this year and for the next year too.
It is said that Indian economy will overtake Chinese economy as per the IMF. By seeing the falling oil prices and a reform drive by the government of Prime Minister Narendra Modi, IMF has predicted so.
Indian economy would expand 7.5 percent in 2015, up from a 6.3 percent prediction made in January, and remain the same next year as per the International Monetary Fund said in its World Economic Outlook update.
According to the Washington-based Fund, “Growth will benefit from recent policy reforms, a consequent pick-up in investment, and lower oil prices.”
India’s government has calculated growth of 7.4 percent for the year which ended in March. It overtook China that made India the world’s fastest growing major economy, after changing the way it calculates gross domestic product.
This news has amazed many economists as India was thought to be struggling through its worst economic slowdown since the 1980s under the previous left-leaning government.
The IMF forecast China’s economic growth would slow down further to 6.8 percent this year from 7.4 percent last year, and slip to 6.3 percent in 2016.
India is a major oil importer and it will continue to benefit hugely from tumbling oil prices which have helped to cool its once stubbornly high inflation, as told by the IMF.
IMF further added, “Lower oil prices will raise real disposable incomes, particularly among poorer households, and help drive down inflation, forecasting consumer price rises would hit 6.1 percent this year and 5.7 percent in 2016.â€