A really good article informing how India's GDP growth nos. are far less than reality:-
The highlight in the Indian economic news space this week was the fiasco regarding the GDP numbers. Probably for the first time the government had to announce a revised GDP number because of obvious errors in the first number.
On August 31, at 11 am, the Central Statistical Organization or CSO, which calculates the numbers, announced that GDP for the first quarter of FY11 grew at a decent 8.8%. But curiously other numbers in that release showed a very poorly growing economy. For instance gross capital formation grew by only 3.7% year on year and private consumption by 0.3%.
The most damning was that GDP counted according to market prices grew by only 3.7% though counted according to factor cost GDP had grown by 8.8% So what's the difference between the 2 GDP nos.
After a lot of angst from economists and the press, a red faced government made the changes and said that the GDP at market prices grew by not 10.2% but by 3.7%
Get complete details here:-
http://www.moneycontrol.com/news/eco...p-_482787.html