Ratings agencies questioning India’s revised GDP numbers

NEW DELHI: Ratings agencies have joined the chorus of concern over India’s revised GDP numbers that have bumped up growth rates sharply. Like others, the ratings agencies have pointed to the disconnect between high growth and indicators.

“While the aim to produce GDP data more in line with international standards is commendable, these new GDP growth levels and the pick-up from as early as mid-2013 are difficult to reconcile with indicators and anecdotal evidence that show low investment levels, weak corporate balance sheets and a rise in banks' non-performing loans,” Fitch said in a statement on India’s rating.

“There has of course been dissonance between the GDP data and the high-frequency data, including corporate profitability and the banking system metrics that we are talking about,” said Atshi Seth, Moody’s chief sovereign analyst for India. “Having said that, the methodology that India’s has applied to its GDP is an international standard.”