India outpaced China: Economist
The Indian economy may have outpaced China's growth rate in 2010, even if by a hair's breadth, according to the Economist.business Updated: Apr 16, 2011 12:50 IST
The Indian economy may have outpaced China's growth rate in 2010, even if by a hair's breadth, according to the Economist.
The article explains citing Central Statistical Organisation and IMF's World Economic Outlook data, released earlier this week, that after adjusting India's GDP for subsidies and taxes its growth rate edges 0.06 percentage points higher than China's for the calendar year 2010.
Official Indian growth estimates are calibrated by the fiscal year running Mar 31 to Apr 1, not the calendar year running from Jan 1 to Dec 31.
This combined with the fact that India relies on counting costs for measuring GDP rather than expenditure like China means that the tax component of India's growth is underestimated if the two economic giants' GDP is compared, argues the blog post.