A Bank of America Merill Lynch report has said that India is growing faster than most emerging market peers and the country is expected to clock a GDP growth of 7.4 per cent this fiscal.

As per reports, according to the firm, India offers relative value in a slow growth world and this faster growth is allowing the country to emerge as the second largest emerging market after China.

Commenting on the issue, a BofA-ML Official told the media, "India still offers relative value in a slow-growth world. In our view we see a shallow recovery at home, we estimate growth at 5.5 per cent in FY16 and 6.5 per cent in FY17 (old GDP series)." "India is a rare economy in today's world in that it is not in stagflation. It is poised to overtake Brazil this year after having overtaken Russia last year in nominal GDP terms to emerge as the second largest emerging market after China," he added.

The brokerage firm also added that lending rate cuts held the key to cyclical recovery and reforms remained important but more from a medium 5-10 year perspective.

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