India to Grow at 7.8 Percent in 2015 and beat China: Fitch Rating

India to Grow at 7.8 Percent in 2015 and beat China: Fitch Rating

India is expected to grow at 2.8 percent in 2015, beating China’s growth rate and more speed up to 8% and 8.1 percent in subsequent years, global rating agency Fitch said on Tuesday.

Along with the BRICS grouping, GDP growth will range from 7.8 percent in India to a short form of 3 percent in Russia and 1.5 percent in Brazil this year, said the Global Economic Outlook released by the Fitch Ratings.  

As regards China, the report said the growth rate "is in a gradual structural slowdown and our unchanged growth forecast is 6.8 percent in 2015, 6.5 percent in 2016 and 6 percent in 2017".

"India's GDP growth will surpass China's this year for the first time since 1999, and accelerate to 8 percent in 2016 and 8.1 percent in 2017. Recovery from the recession in Russia and Brazil will be weak, with growth rates of only 1.5 percent by 2017," the report said.

The global economy, it said, was expected to grow by 2.4 percent in 2015, followed by 2.9 percent in 2016 and 2.8 percent in 2017.

The rise up in 2016, it added, "reflects a recovery from recession in Brazil and Russia, albeit a weak one; while the structural slowdown in China is weighing on global growth potential."

As regards the major advanced economies, Fitch said the growth rate was likely to improve from an expected 1.8 percent in 2015 to 2 percent in 2016 and 1.8 percent in 2017.

However, it added, that the Greek crisis poses a risk to economic recovery.

"Our baseline forecast is for euro zone GDP growth to strengthen from 0.9 percent in 2014 to around 1.6 percent in 2015-2017, but the risk of a Greece exit from the euro zone has intensified following the breakdown in talks between Greece and its creditors and the announcement of a referendum on the bailout proposals, to be held on July 5," the report said.

It added that this "poses a risk to economic recovery. A weaker exchange rate, low oil prices, strengthening confidence, quantitative easing and improved credit conditions support growth".