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India flirts with double-digit growth

The Indian economy could grow more than 8 per cent this year — surpassing China’s likely expansion rate — and has a historic chance for double-digit growth in the future, the government said on the eve of the budget to be revealed by Arun Jaitley, finance minister.

Gross domestic product growth of 8.5 per cent in the 2015-16 financial year was possible assuming a normal monsoon and increased Indian exports to an improved world economy, according to the latest annual economic survey from the finance ministry issued on Friday.

The team that produced the report, led by Arvind Subramanian, chief economic adviser, admitted that it was puzzled by some recent statistical revisions to India’s GDP data but laid out a broadly optimistic assessment of the country’s prospects under the Bharatiya Janata party government of Narendra Modi.

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