India to pip China as fastest-growing economy
By siliconindia   |   Thursday, 12 February 2009, 16:47 IST   |    13 Comments
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India to pip China as fastest-growing economy
Bangalore: Everything has a good and a bad side. Be it a tragedy or a celebration. India is now on the good side of world economic slowdown, as the country is likely to outperform export-dependent China in the last quarter of FY09 and emerge as the fastest growing nation among all large economies, reports The Economic Times. China's GDP growth rate dropped to 6.8 percent during the October-December quarter and is expected to go down further, while the Indian government has become hyper-active to achieve at least a 6.5 percent growth in Q4 to register a win over China. This prospect of the country is sure to woe foreign capital, waiting to chase growth stories. Government officials in India have already been highlighting reports of a few investment analysts who doubted China's official GDP numbers and claimed that it could just be in the positive territory in the last quarter. A secretary in the government of India said that India has a brighter chance of overtaking China in the last quarter of FY09, or Q1 in case of China which follows the calendar year. "China is heavily dependent on exports and the way things are unfolding China's GDP for January-March quarter would be quite low. We have so far achieved 7.9 percent and 7.6 percent growth in the first two quarters, according to the provisional numbers. Though our Q3 number, to be announced by month end, is expected to be less than the comparable number in China (6.8 percent in Oct-Dec, 08), the softening of interest rates will stimulate demand and ensure a faster growth rate than China in Q4," he said.

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