The International Monetary Fund [IMF] said its latest forecast that India would overtake China and may become the world’s fastest growing major economy by 2016. IMF cited that China's industrial growth has been slump and this would let China's growth down in the coming years. For this current year, India is expected to grow at 6.3 per cent and by 2016 it would rise to 6.5 per cent, said IMF in its World Economic Outlook.
The deputy director in IMF's Research Department, said the new reforms of the new Indian government look promising but the process of implementing them would have severe effects on the economy. If the reforms are implemented within a time frame,then India would be ahead of China. Initiatives such as 'Make in India' are attracting investors but the easing of the rules and regulation would push companies to land in India.
The Lower oil prices which results in more supply also supports the growth of India. On the other hand China, registered its lowest GDP in 24 years at 7.4 per cent and it is also the slowest since 1990.