India to Outpace China by 2013
By siliconindia   |   Tuesday, 25 October 2011, 23:41 IST   |    11 Comments
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The forecast from Ernst & Young's Emerging Markets Centre is based on the Oxford Economics Growth Model and offers insight on macroeconomic trends across 25 fast-growing markets, who are challenging the more advanced economies. "While the overall outlook for India is positive, the country will need to address rising inflation which rose to 10.9 percent in August 2011. Provided India's inflation does start to fall back by the end of this year, and the U.S. and EU economies do not slip back into recession, the 'soft patch' for Indian growth would be relatively short-lived. Once inflation is in check, and interest rates are no longer rising, consumers will be more willing to spend, supporting a general improvement in the business environment, with growth steadily accelerating during 2012," the report said. Moreover, the report said India has the advantage of high savings and investment rates, a third of its Gross Domestic Product. It also has a relatively low Gross Domestic Product per capita on purchasing power parity, boosting the potential for growth and continuing industrialization and urbanization.

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