With a growth of 7.5% expected this year by the International Monetary Fund, India will show a higher economic dynamism than China.
China is about to lose the crown of the most dynamic economy in the world. In 2015, India’s growth will reach 7.5%, according to the International Monetary Fund. The previous forecasts were predicting an increase of 6.3% this year and 6.5% in 2016. India will become the most dynamic emerging country.
The IMF attributes this new forecast to the upcoming reforms undertaken by the Indian government led by Narendra Modi. Indian Prime Minister has in fact based its election on the promise of a revival of investment and growth. To do this, he promised to reduce bureaucracy for the industry. But he also committed to eliminate the stakes limits by foreign groups in defense, insurance and construction.
But the country also will benefit from lower oil prices. This will enable them to control the very high inflation. “The decline in oil prices will increase disposable incomes, particularly those of the poor, and helping to lower inflation,” the organization wrote.
The IMF Managing Director Christine Lagarde had already welcomed in mid-March during a trip to India the good performance of the country, seeing it as a “key driver of global growth” in a world of slow and fragile recovery context.