India’s GDP will grow by around 2.2% this year, faster than the growth rate of China, but slower than the world average, a study said on Monday.
The study by the Reserve Bank of India and IndiaSpend said the growth in India’s economic output would be driven by a number of factors, including the strengthening of the domestic sector, the growing number of manufacturing firms and foreign direct investment.
“While the growth trajectory of India’s growth will be broadly similar to that of China and the United States, the economic environment will change in key respects, with lower foreign direct investments and a greater reliance on manufacturing as well as services,” it said.
The research, titled ‘India’s economic growth trajectory’ is based on a combination of statistical analyses and policy analysis.
The central bank will release the report on Wednesday.
The Indian economy grew by 2.1% in the year to March, while China grew by 1.5% and the US by 0.5%.
The latter was the fastest in the world, at 2.3%.
The RBI said that while the country’s GDP grew at 2% in 2012, this year the growth will probably be higher.
The economy is expected to expand at around 2% this fiscal year and the next fiscal, which is due to start on February 1.
India has experienced one of the fastest growth rates in the developing world and has the world’s second-highest gross domestic product (GDP).
The country’s economy is currently growing at a 3.6% rate, but that will be significantly slower than China and America.
In 2017, India’s gross domestic production grew by 6.5%, the fastest rate since the year 2000, according to the World Bank.
The global economic slowdown in the wake of the global financial crisis has caused a drop in global growth to just 2.7% in 2017, according the World Economic Forum.