Indian economic growth has surged above 7 per cent a year and is set to overtake China’s, official figures show, but investors and economists say they are suspicious of the latest statistics following recent adjustments.
India’s gross domestic product grew 7.5 per cent in the three months to December and is expected to expand 7.4 per cent in the financial year to end-March, the Central Statistics Office announced yesterday. That matches Chinese growth of 7.4 per cent in the 2014 calendar — the slowest in 24 years.
However, India’s high official growth is the result of switching from a base year of 2004-5 to 2011-12, among other adjustments. Those changes pushed up 2013-14 GDP growth from 4.7 to 6.9 per cent, while growth in the previous year was revised from 4.5 to 5.1 per cent.