New Delhi, Jul 10 (KNN) India will be the world’s fastest growing economy for the second consecutive year in 2016 at 7.5 per cent, even as it lowered its 2015 global economy growth forecast to 3.3 per cent, said IMF has said.
 
In its World Economic Outlook Update released, the IMF retained India’s growth projection for the current year at 7.5 per cent which will be higher than China’s 6.8 per cent. It forecast a growth rate of 7.5 per cent for India in 2016 as well, as against China’s 6.3 per cent.
 
China was the fastest growing economy in 2014 at 7.4 per cent as against India’s 7.3 per cent, as per the IMF data.
 
IMF's growth projection for India, however, is lower than the estimates of the Indian Finance Ministry and the Reserve Bank of India. The Finance Ministry expects GDP growth to be 8-8.5 per cent in 2015-16, while the Reserve Bank of India has estimated it at 7.6 per cent.
 
In case of both India and China, IMF has retained the projection made earlier in April, while it has lowered global growth forecast from 3.5 per cent to 3.3 per cent for 2015.
 
The global growth projection for 2016 has been retained at 3.8 per cent.
 
According to the report, Global growth is projected at 3.3 per cent in 2015, marginally lower than in 2014, with a gradual pick up in advanced economies and a slowdown in emerging market and developing economies. In 2016, growth is expected to strengthen to 3.8 per cent.
 
A rebound in activity in a number of distressed economies is expected to result in a pickup in growth in 2016.
 
Growth in emerging market and developing economies has been estimated at 4.2 per cent in 2015, down 0.1 per cent from the projection made April. (KNN Bureau)