New Delhi: India will be a “star performer” among emerging market economies and is expected to clock 7.7 per cent growth in 2016, outshining China for the second consecutive year, a PwC report says.
According to the global consultancy firm, only India is expected to grow faster in 2016 than its long-term average growth rate among the emerging market economies.
Among the seven emerging market economies (China, India, Brazil, Mexico, Russia, Indonesia and Turkey), India will be a “star performer”, while the Brazilian and Russian economies will contract and China will slow down, the report said. “For the second year in a row, we expect India to grow faster than China, expanding by around 7.7 per cent in real terms,” it said.
While the G7 economies (the US, the UK, Japan, Germany, France, Italy and Canada) are expected to grow at fastest rate since 2010, led by the first two, the E7 emerging economies will grow slower than their trend rate but still faster than the G7.
The report further noted that India will continue to reap the benefits of recent reforms.
According to data available with depositories, overseas investors have continued to bet on India in 2016, by investing a little over Rs 3,700 crore in the Indian bond market.
The latest inflow comes following a net investment of Rs 45,856 crore ($7.4 billion) by them in the debt markets in 2015.
Foreign portfolio investors infused a net amount of Rs 3,706 crore ($554 million) into the debt markets during January 1-8. However, FPIs pulled out Rs 493 crore from equity markets, still leaving behind an investment of Rs 3,214 crore during the period.
