India need not seek solace in China's economic growth slowing to a three-decade low of 6.1 per cent despite impacted by trade war with the US as it is still growing at a faster pace, said experts.
China's economy grew by 6.1 per cent last year, the lowest growth rate in 29 years, the National Bureau of Statistics said on Friday, as weak domestic demand and the bruising 18-month-long trade war with the US took toll on the world's second-largest economic giant.
India's GDP, which had been growing at a faster pace than China till recently, is estimated to expand by 5 per cent during the year ending March 2020, the slowest in 11 years.
A UN report on Friday said continued structural reforms are necessary to boost growth in India. According to it, the combination of fiscal stimulus and financial sector reforms, boosting investment and consumption, is expected to support a recovery in the economic growth.
"We should not seek solace in the slowdown in Chinese economic growth, given the domestic constraints as well as low visibility of a pickup in the investment cycle," said Aditi Nayar, Principal Economist, ICRA.
While releasing a UN study, Nagesh Kumar, Head, UN Economic and Social Commission for Asia and the Pacific, said fundamentals of the Indian economy are as strong as ever, and the growth should start picking up in the coming years, said.
Rohit Azad, assistant professor of economics at JNU, said China is affected because of the global slowdown as a large source of its growth was the global market.
"India on the other hand is more affected by domestic factors like stagnant rural incomes and economically unreasonable shocks like GST and demonetisation," he added.
Eminent economist and former union minister Y K Alagh said China is a middle income country and at its level of per capita income 6 per cent plus is high growth.
"India's lower growth performance this year was on account of fall in Investment share in GDP, first public, then also private.
"But this is reversing in this quarter with the stimulus after the July budget last year taking effect," he said, and added the current quarter performance of the manufacturing sector is encouraging.
All eyes are on now Finance Minister Nirmala Sitharman, who is scheduled to present the Union Budget 2020-21 on February 1. Industry and other stakeholders are expecting the government would announcing big ticket reforms as well as investment boosters to prop up the slowing economy.
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