India is expected to be the world's fastest-growing economy over the coming decade, surpassing its neighbour China by posting an annual growth rate of 7%, according to Harvard researchers.
The Chinese economy, the world's second-largest, is projected to see a continued slowdown growing at a rate of 4.3% annually over the next 10 years.
"India has the potential to be the fastest growing economy over the coming decade. India tops the global list for predicted annual growth rate for the coming decade, at 7%," new growth projections presented by researchers at the Centre for International Development (CID) at Harvard University showed.
"This far outpaces projections for its northern neighbour and economic rival, China, which the researchers expect to face a continued slowdown to 4.3% growth annually to 2024," the report said.
While the countries that mainly depend on oil and commodity exports will see the slowest growth outlook, South Asia and East Africa possess the greatest potential for fast growth, it said.
"India has made important gains in productive capabilities, allowing it to diversify its exports into more complex products, including pharmaceuticals, vehicles, even electronics," said Ricardo Hausmann, Professor of the Practice of Economic Development at Harvard Kennedy School and CID director.
Hausmann noted: "The gains in economic complexity have historically translated into higher incomes.
"China has already realised many of these gains, doubling per capita income in less than a decade. We expect that India's recent gains in complexity, coupled with its ability to continue improving it will drive higher incomes, positioning India to lead global economic growth over the coming decade," he said.
Growth in emerging markets will continue to remain higher compared to that of developed economies, it said.
The report predicts US economy to grow at 2.8% annually to 2024 and UK economy to post a growth of 3.2%.