A US government report has sought to contest India’s claim of being the world’s fastest-growing major economy, joining sceptics to say the claim of 7.6% growth in 2015-16 may be “overstated”. The report by the Bureau of Economic and Business Affairs of the US department of state added India has been “slow to propose other economic reforms that would match its rhetoric”, a veiled criticism of the Modi government on two key parameters of governance.
“Ostensibly, India is one of the fastest-growing countries in the world, but this depressed investor sentiment suggests the approximately 7.5% growth rate may be overstated,” the report said. But it didn’t offer any data analysis to back its own claim. Rather, it appears to have bought the theory of sceptics of the new GDP series who say India’s decent economic growth figures don’t match other high-frequency indicators like falling exports and imports, and low industrial output expansion and credit growth.