IMF expects the Indian economy to grow by 7.5% in 2015 and 2016, faster than China's expansion of 6.8% in 2015 and 6.3% in 2016. China was the fastest growing economy in 2014 at 7.4% compared to India's 7.3% expansion. The government had estimated growth in the 8-8.5% range for 2015-16 and the Reserve Bank of India expects the economy to expand 7.6%.
The government has taken several measures to boost growth, which is widely expected to yield results in the months ahead. However, economists say the sharp slowdown in China and the financial market turbulence have the potential to hurt the global economy .IMF chief Christine Lagarde had said that India is a bright spot and economic developments in the country hold much promise.
IMF said rise in global growth in 2015 will be driven by stronger growth in advanced economies. Growth in these economies is forecast to increase from 1.8% in 2014 to 2.1% in 2015 (falling about 0.3 percentage points short of the forecast in April), and 2.4% in 2016.
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