India is estimated to record highest annual gross domestic product (GDP) growth rate of 7.9% in South Asia over the next eight years to 2023, surpassing its neighbour China, according to a recent study by Harvard University.
The institution expects emerging markets to continue to outperform developed countries in terms of growth.
"After decades spent trailing the growth of its northern neighbor and economic rival, India now tops the projections of annual growth rates to 2023, ″ said a report by the Center for International Development (CID) at Harvard University.
India's growth rate is expected to average 7.9% over the next eight years, almost double the 4.6% growth projected for China.
"Our Economic Complexity predictions find India's disputed upper hand in growth will expand into a widening gap in the medium-term, with growth projections to 2023 predicted to be at 7.9 per cent annually, well ahead of the 4.6 per cent projected for China," Ricardo Hausmann, Professor of the Practice of Economic Development at Harvard Kennedy School (HKS) and director of CID, was quoted as saying by The Financial Express.
Compared to China's annual growth rate of over 9% in the past quarter century, the current growth projection points to a major slowdown in the world's second largest economy.
The report sees significant reversals among growth leaders, with China lagging behind its South Asian economic rival, India. Meanwhile, Pakistan is also expected to post robust growth of 5.1%, painting a positive growth outlook for the South Asian economy.
The report predicts a slightly optimistic outlook for Europe and the US economies. The US economy is anticipated to grow 2.4% annually by 2023.
In April, the vice-chairman of National Institution for Transforming India (NITI) Aayog Arvind Panagariya had said that India would grow at 8-10% in the coming years.
"I expect India's economy to grow anywhere between 8-10% in the next 15 years," DNA quoted him as saying.
Besides, the World Bank said that South Asia's biggest economy, India, is poised to grow at 7.5% in 2015-16 and possibly clock 8% growth in 2016-17, because of a paradigm shift in its growth pattern – from consumption-led to investment-led.
The Washington-based bank projects China's growth to slow down to 7.1% in 2015 and 7% in 2016, from 7.4% in 2014.