India's Q1 GDP Grows 7.8% But Controversy Remains Over Data Calculation Method
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India's GDP grew 7.8% in Q1 FY24 based on income approach, expenditure approach would have shown lower growth.
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Finance Ministry dismissed criticism of inflated GDP numbers, said income approach consistently used to compute growth.
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Nominal GDP growth lower than real GDP growth due to contracting WPI, will normalize as base effect disappears.
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PMI, bank credit growth, consumption indicate economic activity is improving, GDP numbers may understate reality.
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International agencies revised up India's FY24 growth forecasts after Q1 data, underlying activity not weak.
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