MUMBAI: Foreign investment bank Goldman Sachs on Thursday said that India would overtake China to become the fastest growing emerging market economy from 2016 onwards.
While the Chinese economy is expected to slow down during 2016-2018, India’s economy according to Goldman Sachs is likely to grow by 6.8 per cent in 2016, which is expected to further accelerate to 7 per cent and 7.1 per cent in 2017 and 2018 respectively.
During 2017 and 2018, the economic growth in China is forecasted to grow at a much slower rate of 6.5 per cent and 6.2 per cent respectively.“Improvement in governance and micro conditions especially in the cost of doing business and urbanisation could provide an even larger boost to the country’s potential growth,” said Tushar Poddar, managing director and chief India economist, Goldman Sachs, India.
On the other hand, the subdued demand and slowdown in investments are likely to lead to a moderation in the Chinese economic growth in coming years. According to Mr Poddar, India’s GDP growth would increase on the back of an improvement in investment demand and some pick up in consumption and exports.
