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| India's economy surges by 7.5% in first quarter | India's economy surges by 7.5% in first quarter |
| (34 minutes later) | |
| India's economy grew 7.5% in the three months ending in March, the same pace as in the previous quarter and above expectations. | India's economy grew 7.5% in the three months ending in March, the same pace as in the previous quarter and above expectations. |
| It means the country has outpaced China's economic expansion for the third quarter in a row. | |
| Forecasts were for growth of about 7.3% for the period compared with a year earlier. | |
| However, the country adopted a new way of calculating growth, which some experts say distort the real picture. | However, the country adopted a new way of calculating growth, which some experts say distort the real picture. |
| The country's annual growth for the year 2014-15 was 7.3%. | The country's annual growth for the year 2014-15 was 7.3%. |
| Despite the robust growth numbers, India's government and its businesses are hoping the country's central bank will move to cut lending rates again soon to give the economy a further boost. | Despite the robust growth numbers, India's government and its businesses are hoping the country's central bank will move to cut lending rates again soon to give the economy a further boost. |
| The Reserve Bank of India (RBI) has already cut its benchmark lending rates twice this year, but its rates unchanged in April. | The Reserve Bank of India (RBI) has already cut its benchmark lending rates twice this year, but its rates unchanged in April. |
| New method | New method |
| India's economy grew by 7.5% between October and December compared with the same period a year earlier. | India's economy grew by 7.5% between October and December compared with the same period a year earlier. |
| But quarterly numbers which were released in February this year, created some confusion after a change was made in the way in which the GDP figure was calculated. | But quarterly numbers which were released in February this year, created some confusion after a change was made in the way in which the GDP figure was calculated. |
| Economists warned the data needed to be treated with caution, particularly as growth for the previous three months was revised up sharply to 8.2% from 5.3%. | Economists warned the data needed to be treated with caution, particularly as growth for the previous three months was revised up sharply to 8.2% from 5.3%. |
| Simon Atkinson, BBC Mumbai | |
| Narendra Modi marked a year in office as prime minister this week and these stats suggest the economy he pledged to improve is, well, improving. This would have been the third successive quarter of India's economy growing faster than China's. But because India has revised down the figure from October to December, it means China was still ahead in that period. And it's worth saying lots of people believe India' GDP figures are overstating the reality - and that's because other economic data - such as factory output and export figures - doesn't support the view that things are picking up strongly. | |
| The country also revised up its forecast for annual economic growth to 7.4% for the year to the end of March. | The country also revised up its forecast for annual economic growth to 7.4% for the year to the end of March. |
| The country's new way of calculating GDP has baffled analysts since its release earlier this year. | The country's new way of calculating GDP has baffled analysts since its release earlier this year. |
| India said the new formula is closer to international standards. But analysts have said the new data does not correlate with other economic indicators, including industrial and factory production. | India said the new formula is closer to international standards. But analysts have said the new data does not correlate with other economic indicators, including industrial and factory production. |
| Shilan Shah, India Economist at Capital Economics said: "The economy is not as strong as the GDP numbers might suggest. | Shilan Shah, India Economist at Capital Economics said: "The economy is not as strong as the GDP numbers might suggest. |
| "The numbers should not have any bearing on policies and both the central bank as well as the government should look at other activity indicators. | "The numbers should not have any bearing on policies and both the central bank as well as the government should look at other activity indicators. |
| "For example, autos sales have dropped sharply this year, while bank lending growth had slowed to rates not seen in over a decade." | "For example, autos sales have dropped sharply this year, while bank lending growth had slowed to rates not seen in over a decade." |
| Indian Prime Minister Narendra Modi won last year's general elections promises to reform and revive the economy and to attract much-needed foreign investment. | Indian Prime Minister Narendra Modi won last year's general elections promises to reform and revive the economy and to attract much-needed foreign investment. |
| But many say the country is yet to see any of the "big bang reforms" he promised to deliver. | But many say the country is yet to see any of the "big bang reforms" he promised to deliver. |