India to overtake China as world’s fastest-growing major economy in 2021

India will regain its status as the fastest-growing global economy as early as this year at the expense of neighboring China, which has topped the rankings for two years in row, according to data and analytics firm GlobalData.

The London-based consultancy firm expects the Indian economy to recover sharply this year from its current technical recession, expanding 9.7 percent, quicker than other major economies across the globe. China is expected to see growth of 8.6 percent.

India’s growth will reportedly be bolstered by the substantial foreign direct investment that it has seen in recent months, as well as by a $266-billion economic stimulus package approved by the government in May to help the economy survive the impact of the coronavirus pandemic.

Moreover, the recent drop in Covid-19 cases across the country along with a revival in demand during the festive season are also seen as obvious signs of potential economic recovery.

According to the firm, the nationwide vaccination campaign against coronavirus, launched earlier this month, is set to put the hardest-hit sectors, including transportation, hospitality and entertainment, on the path to recovery.

“The easing of restrictions, along with huge fiscal stimulus from the government, has resulted in marginally better performance of Purchasing Managers’ Index – manufacturing and services since August 2020,” Gargi Rao, economic research analyst at GlobalData said, as cited by Quartz India.

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