India growth likely to exceed China's: Chinese official

NEW DELHI: Indian economy is expected to grow at a faster rate than neighbouring China in the near future, a top Chinese official said today.

The Chairman of China's National Council for Social Security Fund, Dai Xianglong, has also called for gradual internationalisation of Chinese and Indian currencies that would help in safeguarding financial stability in Asia.

"India attaches more importance to knowledge and technology innovation in the development of the new-and-high tech industries. We believe that India may achieve better development in the next few years. In future, the economic growth rate of India is likely to exceed China's," he said.

He was speaking at the annual DSP Merrill Lynch India Investor Conference here.

India and China are the world's two fastest growing economies, coming out of the global financial crisis relatively unscathed.

Impacted by the meltdown, the world economy shrank in 2009 whereas the two Asian giants saw their economies growing at impressive rates.

India recorded 6.5 per cent growth, while China's GDP expanded by 8.7 per cent in 2009, according to the International Monetary Fund.

Xianglong noted that both nations "should strengthen financial exchanges and cooperation and work together to promote the reform of the international financial system and safeguard the financial stability of Asia.

"During this process, the gradual internationalisation of Renminbi and Rupee is of special significance".