India projected to be fastest growing economy over next 10 years

New York India with a projected annual growth rate of 7 per cent has the potential to be the worlds fastest growing economy over the coming decade surging ahead of its South Asian economic rival China that will continue to see a slowdown according to Harvard researchersIndia has the potential to be the fastest growing economy over the coming decade India tops the global list for predicted annual growth rate for the coming decade at 70 per cent new growth projections presented by researchers at the Centre for International Development CID at Harvard University showedThis far outpaces projections for its northern neighbour and economic rival China which the researchers expect to face a continued slowdown to 43 per cent growth annually to 2024 the report said South Asia and East Africa have the greatest potential for rapid growth as oil economies and other commoditydriven economies face the slowest growth outlook it saidIndia has made important gains in productive capabilities allowing it to diversify its exports into more complex products including pharmaceuticals vehicles even electronics said Ricardo Hausmann Professor of the Practice of Economic Development at Harvard Kennedy School and CID directorHausmann noted these gains in economic complexity have historically translated into higher incomes China has already realised many of these gains doubling per capita income in less than a decade We expect that Indias recent gains in complexity coupled with its ability to continue improving it will drive higher incomes positioning India to lead global economic growth over the coming decade he saidThe CID data predicted that growth in emerging markets will continue to outpace that of advanced economies though the gap is closing CID is also bullish on East Africa with Uganda Tanzania and Kenya ranking in the top 10 with all predicted to grow at least 55 per cent annuallyThe growth forecast also looks favourably on Southeast Asia where the Philippines Malaysia Indonesia and Vietnam look to drive growth well above global averages Growth in advanced economies remains slow by comparison though it has risen slightly in the projections in recent yearsThe US is expected to grow at 28 per cent annually to 2024 with higher growth predicted in the United Kingdom 32 per cent and Spain 34 per cent and slower growth in Italy 18 per cent and Germany 035 per cent The United Nations has also predicted that Indiawill continue to be the fastest growing economy in the world in 2016 and 2017 projected to grow by 73 per cent next year and 75 per cent the year after amid a global order that will see persistent macroeconomic uncertainties diminished trade flows and stagnant investmentThe United Nations World Economic Situation and Prospects WESP 2016 report launched earlier this month also predicted a slowdown in growth for China which will grow in 2016 by 64 per cent and by 65 per cent the year afterSustained economic growth is fundamentally humandriven the greater the diversity of productive knowhow in a place the more the complex products it can make which underpins income gains CID researcher on the project Timothy Cheston saidThe CID researchers used their newly updated measure of economic complexity which captures the diversity and sophistication of productive capabilities embedded in a countrys exports to generate the growth projectionsThe projections are based on a decade of research into the relationship between measures of economic complexity and growth which the researchers argue isolates a consistent fact countries that diversify their productive knowhow beyond what is expected by their income tend to grow faster Economic complexity shows remarkable accuracy in explaining differences in countries income levels and in predicting future economic growthThe Centre for International Development CID at Harvard University is a universitywide centre that works to advance the understanding of development challenges and offer viable solutions to problems of global poverty CID is Harvards leading research hub focusing on resolving the dilemmas of public policy associated with generating stable shared and sustainable prosperity in developing countries