ADB, IMF see growth in India overtaking China in 2016

MUMBAI - The Asian Development Bank is projecting that India will grow by 7.8% in FY2015-2016 and by 8.2% in FY2016-17, overtaking China. The International Monetary Fund also expects growth in India to overtake China in 2016. 

The ADB, in its Asian Development Outlook 2015, says expected monetary easing and higher capital expenditure on infrastructure projects will lift India's growth from 7.4% in 2014-15 to 7.8% in 2015-16.

China's growth, the ADB projects, will slow to 7.2% this year and to 7% in 2016, against an average of 8.5%  in the period since the global financial crisis. China has lowered its official economic growth forecast to about 7% in 2015.

As in 2014, Asia in 2015 and 2016 is expected to continue to grow at an average of 6.3 %, slower than the average of 6.7% between 2009 and 2013.

Lower oil prices will reduce inflation in developing Asia to2.6% from 3.1% last year, the ADB says.  A pick-up in India, cheaper commodity prices, and reviving demand in the West will help support the region, it adds. (N Hariharan – ATI).