It's Official: India is World's Fastest-Growing Big Economy

[Razia Sultana]

you are way too fast i think its $5 trillion by 2025

This appears a fair assessment. To grow the Indian GDP to $5 trillion by 2025 India needs to grow at an average of 8-9% and to reach $10 trillion, India will need a growth rate of 15-16%. A growth in the range of 7-10% is realistic as of date.

 

[itachiii]

10 trillion will be achieved in 10 years . It took 3 decades for China. Do u see my point ?

5 tr by 2025 is very much plausible , 10tr is over ambitious..

 

[Indian_Patriot]

The next target should be to surpass the erstwhile colonial powers of England, France and Germany. That will show that India has truly arrived at the global scene.

 

[Razia Sultana]

The next target should be to surpass the erstwhile colonial powers of England, France and Germany. That will show that India has truly arrived at the global scene.

Thats a negative approach. In terms of PPP we are anyways ahead of all except USA and China. India has market and resources while E F G have technology and capital. To grow geometrically we would need to have synergy with them.

 

[Turingsage]

Its official when either IMF ADB or world bank confirms these "estimates" after analysing the raw data. Since the agency which produced this figure doesnt want to release the raw data nor discuss its methodology beyond telling us it changed the base year, these figures can only be termed speculative at best or deliberately deceitful, especially when all parts of the economy are showing that there is a persistent slowdown.

 

[My-Analogous]

Reuters | Updated On: February 09, 2015 19:34 (IST)

A worker climbs up to a pillar of a metro railway under construction in Kolkata. (Reuters)​

India on Monday forecast that annual economic growth would accelerate to 7.4 per cent in the year ending in March after its statisticians changed the way they measure Asia's third-largest economy.

The new estimate is sharply higher than the Reserve Bank of India's (RBI) growth projection of around 5.5 per cent under the old method as well as a revised 6.9 per cent growth a year earlier.

Under the new method, the economy grew 7.5 per cent in the quarter ending in December, outpacing China's 7.3 per cent growth in the latest quarter and making India the fastest growing major economy in the world.

The revisions mark a dramatic turnaround for an economy that barely a fortnight ago was assumed to be still struggling to gather momentum under Prime Minister Narendra Modi's reform-minded government. Prior to PM Modi's election last May, the economy had endured its weakest phase of growth since the 1980s.

The apparent recovery is, however, in large measure due to changes both in the way authorities calculate gross domestic product (GDP) and the base year.

India now measures GDP by market prices instead of factor cost, to take into account gross value addition in goods and services as well as indirect taxes. The base year has been shifted to 2011/12 from 2004/05.

The reading, however, is at odds with other indicators such as industrial production and trade data, which suggest the economy is still suffering from slack.

A. Prasanna, economist at ICICI Securities Primary Dealership Ltd, questioned the credibility of the data and asked the government to explain glaring gaps.

"The government has itself been saying that tax collections are slow due to a slowdown in the economy, but the other wing of the government is saying that GDP growth has been good," he said.

"That means either one part of the economy is not taxed or there is an issue with the data."

GDP growth for the first half of fiscal 2014/15 was also recalculated and revised up to about 7.4 per cent from the 5.5 per cent reported earlier.

(Copyright: Reuters 2015)

Its Official: India is Worlds Fastest-Growing Big Economy - NDTVProfit.com

You can't jump on quarter ending. Wait for a year and then world will automatically know that, but based on quarter ending result no one can claim that.

 

[cloud_9]

With new methodology government will measure GDP at market prices, which includes indirect taxes. Till now, the government has been computing it in terms of GDP at factor cost, which excludes these.
International Monetary Fund and World Bank measure GDP growth of every country at market prices so new method presents real picture of current state of GDP.

So how's the economy growing ? It's just the number that being updated because we are still producing the same amount of stuff.But the tax collection do show a slowdown.