• The Asian Infrastructure Investment Bank (AIIB) is headquartered in Beijing.

The Asian Infrastructure Investment Bank (AIIB) is headquartered in Beijing. (Photo : Getty Images)

A recent study declared China as a global leader in development finance as India takes its place as the fastest growing economy in the world.

Cited by the Financial Times, the new study authored by experts from the Chinese Academy of Social Sciences and Boston University said that China's bigger presence in the international development finance proved the country to be an emerging global leader in the industry.

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However, a separate report from S&P Global India revealed that the Asian giant has been overtaken by India in terms of the rapid growth of economy because of its oil imports, per a report from the Morning Star.

China in Development Finance

The study authored by the Global Economic Governance Initiative's (GEGI) Rohini Kamal, Boston University professor and GEGI co-director Kevin Gallagher, and the Chinese Academy of Social Sciences' Wang Yongzhong named China as a "global leader in development finance" based on data collected on the country's top financial institutions.

According to the document, the Export-Import Bank of China and the China Development Bank (CDB) had recorded outstanding loans that reached about $684 billion as of the end of 2015.

Aside from that, China was also able to set up an additional two multilateral development banks, namely the New Development Bank and the Asia Infrastructure Investment Bank, which brought $106 billion in the country's development finance that brings the total to nearly $800 billion in assets.

This, says the study, was well above the records of six West-supported development banks.

"In terms of scale, Chinese finance is a major foot forward," Gallagher said. "All the talk in the development world is of the need to move from 'billions to trillions' in order to transition to a more low-carbon and equitable world economy."

India's Fast Growing Oil Economy

Despite this, a recent statement from the global financial intelligence firm brings India in front of China in terms of rapid economic growth, which chief economist Paul Sheard pegged at an annual 8 percent in the coming 30 years.

Speaking to the participants of the Financial Leaders' Forum in Saudi Arabia last week, Sheard said that India's growth potential can be attributed partly to the country's demographics, whereas emerging middle-class consumers in the country drives the nation's economy.

The economist also noted Prime Minister Narendra Modi's contribution to the growth, particularly his efforts in boosting infrastructure and foreign investment.

Investors like the Neptune India Fund and the JOHCM Global Emerging Markets Opportunities Fund see India's potential, with JOHCM manager James Syme labeling it as one of his favorite economies.