India is poised to grow 7.7 per cent this year and 8 per cent in 2016 to become the "fastest growing major economy", according to think-tank OECD. In its interim economic assessment report released on Wednesday, OECD said that over the next two years India is set to grow faster than China, where growth is slowing towards the official target of around 7 per cent.
However, the grouping cautioned that maintaining rapid growth would be a challenge for India despite the strong current momentum. The Organisation for Economic Cooperation and Development's (OECD) bullish outlook for India comes close on the heels of IMF chief Christine lagarde describing the country as a "bright spot" on cloudy global horizon.
"India will grow by 7.7 per cent in 2015 and 8 per cent in 2016... India is now expected to be the fastest-growing major economy in 2015-16, overtaking China," OECD said. In November last, the grouping had projected Indian economy to expand 6.4 per cent and 6.6 per cent in 2015 and 2016, respectively.
OECD said that part of this relative improvement reflects significant revisions to past GDP data, which raise the base growth rate through 2014. "The projected acceleration in growth this year is actually smaller than foreseen in the November 2014 Economic Outlook, reflecting sluggish growth of investment and exports.