The Indian economy will grow at a faster rate of 9.7 per cent in 2010 and 8.4 per cent in the next fiscal, while neighbouring China is expected to grow at an even faster rate of 10.5 per cent in 2010 and 9.6 per cent in 2011, the International Monetary Fund (IMF) said in its latest projections.
IMF's latest projections are based on India's robust industrial production and rising consumer confidence as also its macroeconomic performance.
Growth in both India and China will be led increasingly by domestic demand, leading to robust corporate profits and favorable external financing that encourages investment, IMF said.
"India's macroeconomic performance has been vigorous, with industrial production at a two-year high. Leading indicators - the production manufacturing index and measures of business and consumer confidence - continue to point up," the IMF said in its latest `World Economic Outlook' report.
Advanced economies, on the other hand, are expected to grow by 2.7 per cent in 2010 and 2.2 per cent in 2011, according to the report.
The IMF report projects global trade to expand by 4.8 per cent in 2010 and 4.2 per cent in 2011, with a pause during the second half of 2010 and the first half of 2011.