India is all set to overtake China's growth rate by clocking 7.8% GDP in 2015-16 and 8.2% during the following fiscal on the back of structural reforms and government's “pro-investment” attitude, the Asian Development Bank (ADB) said. In case of China, the GDP is expected to decelerate to 7.2% and 7%, respectively. In the current fiscal, both the economies are expected to clock a 7.4% growth rate. “India is expected to grow faster than China in the next few years,” ADB chief economist Shang-Jin Wei said while releasing the bank's annual publication Asian Development Outlook, 2015.
The Indian government's pro-investment attitude, improvement in the fiscal as well as current account deficit situation, and some forward movement on resolving structural bottlenecks have helped improve the business climate, making India attractive again to both domestic and foreign investors, he added.
The Indian government however, expects the growth rate to accelerate from 7.4% to 8-8.5% in 2015-16. The International Monetary Fund (IMF) has projected a growth rate of 7.5% for next fiscal.