India’s GDP Growth Rate to surpass China in 2016: Asian Development Bank

India is on a roll – and that could help boost economies across Asia. According to the Asian Development Bank’s latest economic outlook, India’s growth could outstrip China this year and next – helping to offset the pain of a Chinese slowdown.

Growth Rate Indicator Graph

India’s GDP growth rate is expected to be 8.2% in 2016

For Asia watchers – it’s a bit of a turnaround after years of seeing China outshine India in many aspects of economic development.

The ADB expects China’s growth to cool to 7.0 in 2016 as authorities make reforms in the face of a property downturn.

India meanwhile could see GDP surge 8.2 percent – that’s thanks to a rush of investment flows on the back of reforms by the country’s new government.

The ADB’s annual report provides a framework for assessing the outlook in a huge region – encompassing both poverty stricken nations and Asian Tigers.

But whether rich or poor, the ADB’s biggest worry for Asia is a huge rise in bank loans and bonds over the past few years.

The spending spree, it warns, could backfire if the bubble bursts.

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