Indian economy to surpass China's in 2018

In the backdrop of the numerous economic reforms undertaken in India, it is expected to become the fastest growing large economy in the world, overshadowing that of China in 2018, a report drafted by Sanctum Wealth Management noted.

The report stated that India's equity market will jump to become the fifth largest in the world, as India is seen as a reforming economy with the prospect of strong long-term growth.

It identifies that reforms such as Aadhaar, Jan Dhan, Demonetisation and Goods and Services Tax (GST) will create a new inclusive infrastructure in India.

The Delhi-based professional wealth management company further stated that while developed economies are achieving two to three percent growth, India is focused on breaching 7.5 percent.

Moreover, India also benefits from a favourable contrast to other emerging markets, in particular, over China.

However, if inflation or rates rise, markets are not likely to register further gains, which can subsequently impact market performance, the report said.

A major factor that has changed, the company notes, is that the domestic buyer now sets market prices. Domestic mutual funds bought equities worth USD 15.3 billion as against USD 8 billion by foreign investors in 2017.This, the company says, will help maintain India's growth.

-ANI