 "India to clock 7.5% growth, overtake China: IMF")
"India's growth is expected to strengthen from 7.2% in 2014 to 7.5% in 2015. Growth will benefit from recent policy reforms, a consequent pick-up in investment, and lower oil prices," the IMF said in its latest World Economic Outlook.
China will witness a deceleration with growth rate sliding from 7.4% in 2014 to 6.8% in 2015 and 6.3% a year after, it added.
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The report, released at IMF headquarters here on the sidelines of the annual meeting of the IMF and the World Bank, said lower oil prices will raise real disposable incomes, particularly among poorer households, and help drive down inflation.
"The early evidence suggests that in oil importers, from the United States, to the euro area, to China, and to India, the increase in real income is increasing spending.
"Oil exporters have cut spending but to a smaller extent: many have substantial financial reserves and are in a position to reduce spending slowly," Olivier Blanchard of the IMF said in a news conference.
In 2015 World Economic Outlook, the IMF has improved India's growth prospects for the current fiscal as well as next fiscal by 1.2% and 1% over its January projection.
The upward projection for India by IMF comes at a time when other economies are not likely to show improvement in economic performance.
According to the report, global growth remains moderate, with uneven prospects across the main countries and regions.
"We forecast global growth to be roughly the same this year than last year, 3.5 percent versus 3.4 percent," said Olivier Blanchard of the IMF in a news conference.
"This global number reflects an increase in growth in advanced economies, 2.4% versus 1.8%, offset by a decrease in growth in emerging market and developing economies, 4.3% versus 4.6% last year," he said.