How India is set to beat China in overall GDP growth sooner than expected.

New Delhi is positioned to outpace China on various economic measures sooner than anticipated, driven by strong GDP growth, a focus on manufacturing with global companies like Apple bolstering local supply chains, high praise from top American business leaders for Prime Minister Narendra Modi's leadership, and political stability. India has been outpacing China in GDP growth for several years now. In 2023, India's GDP growth stood at approximately 7.5%, while China's growth was around 5%. China's GDP grew by 5.3% in the first quarter of this year and by only 1.6% on a quarter-on-quarter basis.

The International Monetary Fund (IMF) projects India's growth to reach 6.8% this year, up 0.3% from its January estimate, while China's GDP growth is forecasted at 4.6% in 2024, slowing further to 4.1% in 2025. The IMF foresees China's growth declining to 3.5% by 2028 and predicts that by 2027, India will become the world's third-largest economy after the US and China.

Finance Minister Nirmala Sitharaman stated that PM Modi's government will secure a third term, propelling India's economy from fifth to third place globally ahead of schedule. Chief Economic Adviser V. Anantha Nageswaran suggests that India could even achieve an 8% economic growth rate in 2023-24.

RBI Governor Shaktikanta Das projects India's GDP growth at 7% for 2024-25, surpassing China's decelerating growth. Global recognition of India's economic influence is evident, with leaders like JPMorgan Chase CEO Jamie Dimon, Warren Buffett, Apple CEO Tim Cook, and Elon Musk acknowledging the country's potential.

IMF data shows India's per capita GDP in 2024 increased to $2,850, accounting for 42% of its peer countries' $6,770 average, indicating improved economic performance relative to other emerging economies over the past decade. A decade ago, India was the 10th largest economy with a GDP of $1.9 trillion, a transformation attributed to significant economic reforms implemented during this period.