Two years ago, India was an unhappy member of Morgan Stanley’s “Fragile Five,” a handful of emerging economies judged most vulnerable to tighter Federal Reserve policy and rising global bond yields. Since then, India’s oil bill has dropped, inflation has eased, gold imports have been curtailed, the trade deficit has narrowed — and in last year’s national elections, Narendra Modi’s Bharatiya Janata Party (BJP) romped to victory, becoming the first single party to win a majority in the lower house of parliament for 30 years.
No longer known for its fragility, India now enjoys a happier economic distinction. According to the International Monetary Fund (IMF), it will grow by 7.5 percent this fiscal year (which ends March 2016), faster than China over a similar period. If the forecasts are fulfilled, India’s economy can claim to be growing faster than any economy that’s bigger, and to be bigger than any economy growing faster.
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