China may have become the world's second largest economy. But when it comes to growth, India is expected to have an edge over its Chinese rival. The World Bank has revised China's growth forecast for 2011 to 8.5%, a shade below its estimate of 8.6% for India.
If the bank's predictions come true, India will, for the first time, become the fastest-growing among large economies. China has been seeing a slowdown in growth off late. Exports are still struggling to recover given the subdued economic conditions in the US and Europe. Inflation is high and the dragon nation has been facing continuous pressure to let its currency appreciate. Thus, weak global growth and fading impact of the stimulus package is what makes the World Bank opine that growth will slow to 8.5% in 2011.
Thus, even though India has its own set of problems, it is still boasted to topple China when it comes to pace of growth. Whether that happens sooner than later remains to be seen.
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