India overtakes China as world's fastest growing large economy in 2015

Chris Papadopoullos
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The strong economic growth is good news for Prime Minister Narendra Modi, but some are questioning the accuracy of the figures (Source: Getty)

India's economy has overtaken China's to become the world's fastest growing large economy.

Figures published by the country's Central Statistics office today showed the economy grew 7.3 per cent in the final three months of the year compared with the same period in 2014. It marks a slight slowdown from the three months to September when the economy grew 7.4 per cent.

China's annual economic growth was 6.8 per cent over the final three months of the year.

Read more: Markets are testing China to see if it's the new Japan

The data rounds off a year in which official figures have put Indian economic growth ahead of Chinese economic growth in every quarter.

However, many have been led to question the quality of the official data in both countries.

Lombard Street Research, a consultancy, believes China's economy expanded by 3.3 per cent year-on-year in the final three months of 2015. That figure was up from 2.8 per cent in the three months to September.

Indian consumer confidence has fallen 8.8 per cent over the past year, according to survey figures published today by MNI Indicators. The firm's consumer sentiment index rose marginally in January to 109.8, but is far below its long term average.

"“This was the first increase in the MNI India Consumer Sentiment Indicator since August last year and in that respect it is most welcome. Whether it marks an end to the sharp decline in sentiment seen throughout 2015 is another matter,” said Philip Uglow, chief economist at MNI indicators.

Last month, Uglow said the "decline in consumer sentiment serves as a warning that all is not well in the Indian economy and leads us to question in part the strength of the official GDP data."

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