India’s economic growth is projected to surpass that of China's in 2016 with the GDP expected to zoom by 7.7 per cent, according to a UN report which said India will help accelerate growth in South Asia. The mid-year update of the UN World Economic Situation and Prospects (WESP), released on Tuesday, said India's economy is projected to grow by 7.6 per cent this year and 7.7 per cent in 2016, overtaking China.
China is projected to grow by 7 per cent in 2015 and 6.8 per cent next year. The report termed South Asia's economic outlook as ‘largely favourable’ since most economies are expected to experience a strengthening of growth in 2015-16 on the back of stronger domestic consumption and investment, and a pick-up in exports. The region’s GDP is projected to grow by 6.7 per cent in 2015 and 6.9 per cent in 2016, up from an estimated 6.3 per cent in 2014--a significant revision of the previous forecast. “This revision mostly reflects a higher growth trajectory in India,” it said. It said the growth prospects for Iran and Pakistan have also improved moderately, although for both countries significant uncertainties remain.