New Delhi: India may have become the fastest growing economy in the world after the adoption of new calculation method but questions are being raised over whether the ground reality supports the growth rate.
"Let's not get carried away. The ground reality is very different," a Finance Ministry official told Economic Times.
The Central Statistics Office (CSO) on Monday said that India, presently Asia's third-largest economy, is set to grow at 7.4 per cent and cross the USD 2.1-trillion mark this year against 6.9 per cent growth in 2013-14.
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India grew 7.5 per cent in the October-December quarter, according to the estimates released Monday. It has surpassed China's 7.3 per cent growth in the same quarter and became the fastest growing major economy in the world.
All eyes will now be on Finance Minister Arun Jaitley, who will be presenting the Annual Budget later this month, and also on Reserve Bank of India (RBI) Governor Raghuram Rajan as he weighs options on whether to cut interest rates again.
Anil Bhardwaj, secretary general of the Federation of Indian Micro and Small & Medium Enterprises, told Economic Times that on ground the feedback are not positive as SMEs are not getting the orders.
"There is an improvement in business sentiment, in the environment, but unfortunately there is no movement on the ground,” Bhardwaj said.
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