Sonal
1
All posts from Sonal
Sonal in Smart Investing & Retirement Plans,

India's growth rate to surpass China's in 2016

India could beat China as the world's fastest growing economy by this year, according to International Monetary Fund director Christine Lagarde.

Lagarde, who was visiting India last week, said the country's economy is expected to grow 7.5% in the upcoming 2015-2016 fiscal year, which begins in April, up from 7.2% in the current fiscal year as Manufacturing and Service Industries are doing well in India .

At that rate, India would be the world's fastest growing large economy, she added.

Late last year, the IMF had predicted that India's economy would grow by 6.5% in 2016, faster than China's predicted 6.3% expansion. Estimates have since been revised for Indian gross domestic product.

However even with the faster pace of growth, India doesn't come close to China in terms of raw economic power.

China's economic output totaled more than $10 trillion in 2014, compared with India's roughly $2 trillion, according to IMF data. Also, predictions don't necessarily always come true.

Still, Lagarde describe India as a "bright spot" in the outlook for global economic growth.

"The conditions are ripe for India to reap the demographic dividend and become a key engine for global growth," Lagarde told students at an event organized at a women's college in New Dehil on March. 16. "It is on the verge of a new chapter, filled with immense promise."

Much of the IMFs growth forecast is due to those changes in accounting and not necessarily a boom in India earnings. However, stronger corporate investment is expected under new Prime Minister Modi.

Comments posted by people on CNN Money :

" My company is sending as many IT and tech jobs as they can to India right now. Many bright minds have been laid off in recent months around here so that the company can shrink and make as much money as possible. Those claiming that there are not enough people to fill these jobs are 100% wrong, there is a glut of qualified people. The issue is greed."

"At that rate, India would be the world's fastest growing large economy, she added" after being sent all the IT jobs what did you expect. Imagine our economy if we kept IT and IT manufacturing here. But better to sell the old US for the rich and connected."