Wednesday, April 27, 2011

Indian growth overtakes China's?

Commentators project India overtaking China's in the near future. The IMF reckons this has already happened, the Economist reports.

The explanation runs as follows. India reports GDP by factor cost; China by expenditure. Look at India's GDP by expenditure and you find Indian GDP was a shade ahead of China's in 2010 (calendar year)- 10.4% and 10.3%. The Indian growth rate is at constant prices, so it has nothing to do with the high rate of inflation.

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