Since 2021, India has outpaced China in annual growth !! This is something 'desperate' for headlines Rahul Gandhi may miss. But this is what Cockroaches and their sponsors must be 'upset' about.
The 2010s began to show signs of convergence, and from 2015 India increasingly began matching or exceeding China's cooling growth trajectory.
The post-Covid years have made the shift even clearer.
Since 2021, India has outpaced China in annual growth, turning what once looked like a temporary divergence into a broader decade-long trend. That is why the current comparison is more significant than simply saying that India grew 7.7% while China grew 5%.
The International Monetary Fund's (IMF) projections suggest that this advantage is likely to persist.
In 1980, China's economy was growing at around 7.9%, while India's growth was considerably lower, at around 6.7%.
The gap widened in the decades that followed. Throughout the 1980s, 1990s and 2000s, China consistently maintained a higher annual growth rate than India.
On the other hand, India was growing, but at a slower and more uneven pace. That historical pattern has now been disrupted.
Despite all the troubles globally and otherise, India’s economy is showing resilience.
India’s growth for the year ahead was estimated at just over 7%, which could fall to 6.8% in an alternate scenario, the agency said.
The International Monetary Fund, a global lending institution, raised its growth outlook for India and lowered it for the US and other countries.
India's GDP growth rate in financial year (FY) 2025-26 was estimated at 7.7%, compared with around 5% for China. On the face of it, this is a remarkable achievement for India.
But the more important story is that the gap is no longer simply about one year's performance.
Since 2015 and the post-Covid period (2020-25), India has repeatedly grown faster while China's once spectacular growth engine has continued to plummet.
If predictions by international bodies are anything to go by, this decade, from 2020 to 2030, will be India's.
China's decades of much faster growth have created an economy that is still substantially larger than India's. If a much larger economy grows at 5% while a smaller economy grows at 7%, the smaller economy is expanding at a faster percentage rate, but the larger economy may still be adding more economic output in absolute terms.
In simple terms, India may now be running faster, but China is still running on a much larger track. That is the caveat behind India's impressive growth story.
Yet it does not reduce the importance of what India has achieved. For decades, China was the economy that consistently grew faster than India. Today, the direction has reversed. India has entered this decade with stronger growth, while China is moving through the natural and increasingly difficult transition from an exceptionally high-growth economy to a more mature one.
The question is no longer whether India can grow faster than China for a year. The bigger question is whether India can sustain that advantage long enough.
India’s average headline inflation has dropped to 4.7% (September 2016 to December 2025), down from 7.4% in the years prior (April 2012 to August 2016).
While managing inflation, price stability was maintained through the robustness of the banking sector.
The problem of bad loans that plagued India’s banking sector has declined.
Banks now have stronger balance sheets.
RBI also made adequate interventions in the foreign exchange and gold markets to ensure that the volatility in the currency markets did not get out of hand.
The government in 2019 offered basic cash income of Rs 6,000 per year to farmers.
People in the villages welcomed it because farmers suffer from ‘money illusion'.
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