India's economic 7.4% growth surpasses China's 6.9%

India's economy grew 7.4 percent in the third quarter, overtaking China's 6.9 percent for the same period due to strong domestic demand and improved industrial productions.

Sputnik International reported that India's economic growth increased from the second quarter's 7 percent. Lowe commodity prices lead to robust manufacturing, better competitiveness, and cost-efficiency. An increase in domestic consumer demand is another factor that propelled the country's economic growth.

There is an increase in supply and demand in the country, which indicates sustainability in the growth of its macroeconomic performance. India depends on fuel and gold imports. As commodity prices went down, India took advantage bolstering the country's fast growing market.

BMI Research's Chua Han Teng said India's economy will continue to be a growth outperformer in Asia until 2016.

After China experienced a severe economic slowdown this summer, economists projects the country's growth rate to continue declining. The International Monetary Fund (IMF) expects China to grow by 6.8pc in 2015 and 6.3pc in 2016, while India is seen to grow by 7.3pc in 2015 and 7.5pc in 2016-17, according to a report by Telegraph UK.

According to a report by The Tribune, Industry body, Ficci, said, "Both the government and the RBI have been factoring in the aberrations and amidst this situation it is critical to keep the optimism intact. There has been some moderation in the confidence level of India Inc and the same has been reflected in our latest Business Confidence survey. The domestic private investors still have a guarded outlook with regard to investments."

Another factor that accelerated India's growth it the demographics. The positive effect of China's decision to let go of its one-child policy rule is not going to reflect any time soon. As China's working-age population continues to dwindle down, India's is rapidly growing.

The United Nations predicted that India would become the most populous nation in the world by 2022, overtaking China.