India forecasts faster growth in FY15 under new puzzling method

Mumbai

INDIA forecast its growth will accelerate this fiscal year under a revised method for calculating gross domestic product (GDP) that has confused economists since it was unveiled about two weeks ago.

The economy will grow 7.4 per cent in the year to March 31, aided by a 7.5 per cent increase in October-December, the Statistics Ministry said in New Delhi on Monday. Last month, it revised the previous year's expansion to 6.9 per cent from 4.7 per cent, prompting economists including Reserve Bank of India (RBI) governor Raghuram Rajan to question the growth surge.