According to the Statistics Ministry, India’s economic growth outpaced China’s in July-September, at 7.4%, compared to 7% in April-June. An acceleration that could persuade the country’s central bank at its Tuesday meeting to keep interest rates unchanged.
Indranil Pan, the chief economist at Mumbai-based IDFC Bank, has said;
“Growth is on a relatively stable path. There will be enablers to improve growth through consumption and low interest rates in the economy.”
India managed to stride ahead due to its divergent economy and windfall gains from a plunge in commodity prices, whilst other emerging economies such as Russia and Brazil are struggling amid China’s slowdown.
Whilst this data shows India to be the fastest growing economy in the world, it is still not enough for its large population. To create jobs for its population, India will require big investments and therefore a business friendly environment.
However, economist Pan doesn’t think that growth will continue at this rate;
“Growth is likely to moderate in the next few quarters as government expenditure was front-loaded, and it will get slower going ahead,”
