A mid-year update of the UN World Economic Situation and Prospects report says India’s economic growth is to surpass China’s in 2015-16.
According to the report, Indian GDP is expected to zoom by 7.7 per cent in 2016 which will help accelerate economic growth in South Asia.
It will overtake China, which is projected to grow by 7 per cent in 2015 and 6.8 per cent next year.
The report explains, due to a recent decline in oil and food prices, the average inflation in the South Asian region is to fall to its lowest level in almost a decade. As a result, monetary policy has become more expansionary in several countries, notably in India.
However, despite the improved outlook, South Asia’s economies still face long-standing development challenges including energy shortages, infrastructure deficits, and political and social unrest.