IMF : India’s economy to outpace China

In its World Economic Outlook update, the International Monetary Fund said due to falling oil prices, and a reform drive by the government of PM Narendra Modi, India’s economy will grow much faster than forecast this year and next, and outpace rival China.

PM Modi has lifted the cap on foreign investment in the defence and insurance sectors and announced a series of initiatives. The right wing government’s ongoing emphasis on pro-business policies has bolstered investor confidence.

The IMF said India would expand 7.5 percent in 2015, up from a 6.3 percent prediction made in January, and remain the same next year.