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Nowadays, I'm observing that the government of India is predicting much higher GDP growth for the Indian economy. I hear that the government has changed the base year, such that it is able to show a high growth rates.

  1. Is that true?
  2. Can anyone explain how it works?
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    $\begingroup$ Can you bring forward a source for your claim regarding the change of the base year? It most likely doesn't mean what I - after reading this question - think it means. $\endgroup$ – FooBar Apr 13 '15 at 20:39
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I don't know what the Indian government's growth accounting practices are, but the World Bank has an independent forecast that shows India's GDP growth increasing in the near-term (pink area is a forecast):

enter image description here

The source is here: http://data.worldbank.org/country/india, where you can get more detailed data.

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Changing the base year of index numbers shifts the level only, it does not alter the rates of growth. So, not true.

If the rates of growth changed, this must have been due to revisions of the historical estimates of GDP. Can also stem from changes in the national accounting standards.

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