ICICI Bank said in a report that driven by productivity enhancement and infrastructure development, India is expected to outpace Asian dragon China and become the fastest growing economy in the next four years. "India is expected to grow at an average of 9.4% in this decade and will outpace China by 2015 becoming the fastest growing economy."

It added that the rise in growth trajectory will lead to the widening of the current account deficit to an estimated 3.7% of GDP by 2014-2015 which implies a rise in absorptive capacity for capital flows to USD 173 billion by FY 2015.

The Planning Commission is looking at 9% to 9.5% GDP growth for the 12th Plan period from 8.2% in the current plan.

The country is estimated to have recorded an annual growth rate of 8.2% during the 11th Plan against 9% target. The performance was impacted by the global financial crisis and drought.

The report said that the domestic demand for air conditioners and refrigerators is expected to grow more than seven times by 2020 adding that the cellular industry is expected to double its subscription base. At the same time the savings rate is expected to rise to 41.3% of GDP by 2020 while the investment rate is likely to rise to 46.9% of GDP during the same period.

(Sourced from the indianexpress.com)