India is leading the growth chart of major economies for the first time, with further growth expected says the World Bank Group’s latest Global Economic Prospects (GEP) report. The reforms have buoyed confidence and are improving business and investor confidence and attracting new capital inflows. Falling oil prices have also reduced vulnerabilities, paving the way for the country’s economy to achieve a growth of 7.5 per cent this year.

India comes in ahead of China, which has experienced a continued slowdown. China is easing to a growth rate of 7.1 per cent. Brazil has been less lucky, dipping into negative growth.

The decline in global oil prices has been a major benefit for the South Asia region, driving improvements in fiscal and current accounts, enabling subsidy reforms in some countries, and the easing of monetary policy. Growth in the East Asia and Pacific region is expected to ease to 6.7 per cent and remain stable over the next two years. A net oil importer, the region is expected to benefit from lower fuel prices, although commodity exporters Indonesia and Malaysia face pressures from lower global prices of oil, gas, coal, palm oil, and rubber.

In Pakistan, the manufacturing and service sectors are expected to continue to recover, but growth is expected to remain moderate. Growth in Europe and Central Asia is expected to weaken further to 1.8 per cent in 2015 as a result of the oil price collapse, geopolitical tensions, and related spillovers.