India's accelerating growth can fill the global commodity demand gap left by a slowing China

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Rashtrapati Bhavan, the official residence of the President of India, in New Delhi. China's growth slowdown is set to hurt global commodity demand, but India could make up for some of that shortfall, according to ANZ. India's economic growth is likely to outpace China's, with the South Asian nation set to become the third-largest economy by the end of this decade, the bank predicted. That means India's demand for commodities will likely surge, and it could cover more than half of China's demand shortfall especially in the energy sector, the bank said in a recent report. "India's demand for commodities is slated to grow rapidly, supported by favorable demographics, urbanization, the expansion of manufacturing and exports and the build-up of infrastructure," ANZ analysts wrote. India has overtaken China to become the most populous country, and according to ANZ's data, its rate of urbanization is expected to rise to 40% by 2030 from current levels of 35% — stoking demand for industrial metals and energy commodities which are often associated with a rise in demand for infrastructure and manufacturing.