In recent times, China’s economy has been steaming ahead making it the second largest after the United States. Now as the faltering of the Chinese economy continues and stock markets around the world are jittery, the latest economic data suggests that India has overtaken China as the fastest major economy in the world.

The Indian economy grew by 7.3% last year offering some hope in the uncertain global markets. According to the official New Delhi data, India’s quarterly growth was as expected to outstrip China’s 6.9% at the end of last year. For 2016, the growth is expected to reach as high as 7.6% giving hope to investors who are now not seeing China as the economic torch carrier.

It is true that some critics are arguing that the figures benefited from the revision of how data is derived. But with the International Monetary Fund (IMF) itself project the growth over 7.5% over the next two years, there is chatter within the financial markets of India making huge strides in the coming years. There are numerous reasons as to the rise. The recent collapse in the oil prices around the world. has helped as a lifeline for millions of people to tame high costs and inflation which have plagued the economy.

There is, of course, the Modi factor which in itself has helped to increase confidence and bolster foreign investment. After his success in Gujarat, Prime Minister Modi has promised to improve the business infrastructure, reduce bureaucracy and attract foreign investment. The Managing Director of IMF, Christine Lagarde has publicly stated that Mr Modi’s reform will be “critically important for the unleashing of growth potential that India has to offer.” Reported in the Telegraph, Prasanna Ananthasubramanian, chief economist at ICICI Securities added: “The drivers of growth from the data suggests that government spending and consumer spending are really strong.”

This is in sharp contrast to the Chinese economy which is still doing very well, but with years of successive growth, government officials are grappling with the slowdown and trying to manage expectation. While the Indian economy looks rosy, there are dark clouds on the horizon as sales in motor vehicles and other goods are actually declining. The figures are partly up due to the success of IT and e-commerce.

As for Prime Minister Modi, it is crucial that the expectations of the 1.2 billion Indians are met by 2019 as the General Elections will again take over the headlines. It is a big task, but a challenge that the newly found confidence of Indian entrepreneurs would like to cherish. Mumbai, India’s commercial capital, is hosting a “Make in India” week from Saturday designed to revive Mr Modi’s industrial strategy. Reported in theFinancial Times Amitabh Kant, secretary for industrial policy and promotion stated “The challenge before India is to sustain a 9-10 per cent growth rate for the next three decades,” said  “This can be achieved only if India continues to offer an easy ecosystem for businesses to flourish and a robust manufacturing sector growth.”