India’s economic growth rate will slowly accelerate to 8% by fiscal year ending March 2019, driven by the gradual implementation of structural reforms, higher disposable income and improvement in economic activity, global rating agency Fitch. Fitch expects India’s GDP to grow 7.5% in fiscal year ending March 2016 and improve to 7.7% in the current fiscal year and further to 7.9% in the fiscal year ending March 2018.

The global agency said that the passage of the Bankruptcy Code earlier this month showed that implementation of big ticket reforms is possible in India, even though reforms related to land acquisition and a Goods and Services Tax have not passed thus far. It also expects higher disposable income to contribute to faster GDP growth.

India remains the fastest growing country across the world with GDP in 2016 estimated to grow at 7.55% year on year compared to global GDP which is likely to grow at 2.5% according to Fitch estimates. However, growth expectations for China have been revised up to 6.3% in 2016 and 2017, from 6.2% and 6% previously, as earlier policy stimulus gains traction and the authorities’ commitment to stabilising near-term growth has strengthened.