Macroeconomic indicators - Indian growth to beat China in 2012 - World Bank

Monday, 17 Jan 2011

The World Bank has pegged Indian economic growth to take over Chinese by 2012 on purchasing power parity basis, but Indian government has played down the projection by the multi lateral agency saying the country is not in race with anyone.
In its latest report on Global Economic Prospects, the World Bank has projected Indian economy to grow by 8.7% in 2012, faster than 8.4% expected for China.
However, these projections are based on PPP basis, which means that purchasing power of currencies are taken into account for measuring economic growth. As such, these projections are not the traditional way of measuring the economic growth.
Reacting to the World Bank projections, Mr Pranab Mukherjee Indian finance minister said that "India is trying (to achieve high growth rate), but I am not going to compete with anybody."
He said every country is trying hard to overcome the economic crisis and reach a desired level of growth.
He added that "Nothing wrong in it. He said India wants to record double digit growth with moderate inflation and fiscal prudent policies.”
He said that "We want to reach double digit growth, at the same time having modest rate of inflation without indulging in fiscal profligacy that means with prudent fiscal management.”
Indian and Chinese economies are not comparable. The size of Indian economy is USD 1.3 trillion and Chinese economy is worth USD 5.5 trillion.
Sourced from FE