Christine Lagarde: India's GDP to exceed that of Japan and Germany combined by 2019

The Indian economy is expected to more than double in size in the 10-year period finishing in 2019, according to the International Monetary Fund (IMF) managing director Christine Lagarde.

In a speech at the Lady Sri Ram College in New Delhi, the IMF chief will say that India's gross domestic product will exceed that of Japan and Germany combined in the next four years, when adjusting for differences in purchase prices between economies.

"In this cloudy global horizon, India is a bright spot. Recent policy reforms and improved business confidence have provided a booster shot to economic activity," Lagarde will say.

Based on India's new GDP measurement, the IMF expects India's growth to pick up to 7.2% in the financial year ending in March 2015 and accelerate further to 7.5% in the next fiscal year. At that pace, India will be the fastest-growing large economy in the world.

She notes that higher growth rate is backed by the country's demographic features. More than 50% of India's population is currently below the age of 25 and more than 12 million people enter the labour market every year.

"By 2030, India is expected to have the largest labor force in the world. At more than one billion people of working age, India's labour force will be larger than the combined labour force in the United States, the Euro Area, and Indonesia," the speech states.

Lagarde will advocate "stronger economic frameworks" for the country to make its economy "more resilient, nimble, and ever more supportive of growth." She wants the country to have sound monetary and fiscal policies and a healthy financial sector to support growth.