World Bank says India will be the fastest growing economy in 2016 with a predictable growth rate of 7.8%, outshine China. In 2017 and 2018, growth rate may touch 7.9 per cent. Uncertainty in global economy is not going to affect India as India is well-cushioned after the China rout.
World Bank said - “growth in Asia’s third-largest economy would accelerate in the coming years even as much of the world is slowing down”. It is because the Union Government is implementing economic reforms and subtle changes that will make the country’s economy more efficient and vibrant. India’s currency and stock markets were largely resilient over the past year, even during bouts of volatility in global financial markets.
World Bank points out that India will soon have the largest and youngest workforce the world has ever seen. At the same time, the country is in the midst of a massive wave of urbanization as some 10 million people move to towns and cities each year in search of jobs and opportunity. It is the largest rural-urban migration of this century.
World Economy in Coming Years
The World Bank estimates that China grew at 6.9% in 2015 which is 0.3% below the expected rate. It also said that China will grow at 6.7% in 2016 and 6.5% each in 2017 and 2018. In the calendar year 2017, the world’s combined GDP expansion will only be 3.2% with major economies expanding only at the rate of 2.2% and developing countries on average growing 5.4%.