India is one of the fastest growing economies in the world, thanks to the country's decision to diversify its economies into complex sectors such as chemicals, vehicles and electronics, according to a Harvard University report.
In the coming decade, India is expected to grow at 7.9 per cent annually and it will be ahead of China and the US, the Centre for International Development at Harvard University (CID) said in new growth projections.
"India tops the list as the fastest growing country for the coming decade, at 7.9 per cent annually, in the economic complexity growth projections. India has made inroads in diversifying its export base to include more complex sectors, such as chemicals, vehicles, and certain electronics," the report said.
In December 2017, India gained the title of the world’s fastest-growing major economy after figures revealed that the India's economy grew at an annual rate of 7.2 per cent in the final quarter of last year. India's growth story is expected to continue for the next few years, with the International Monetary Fund forcasting that India will grow 7.4 per cent in 2018 and 7.8 per cent in 2019.
According to the Harvard report, India also ranks the best on the Complexity Opportunity Index (COI), which measures the ease at which existing knowhows can be used to enter new complex products.
"India's existing capabilities have not only diversified its exports, but also allow for easy redeployment into related products that depend on those capabilities, making further diversification relatively easy," the report said, adding: "Up to now, that potential remains unrealized, however, as India's complexity has not changed over the past decade. The rapid growth that is predicted is effectively capitalizing on previous gains in complexity."
China is projected to grow at 4.9 per cent annually and the US at three per cent.
