Too Soon To Hype India's Growth Story: Chinese Think Tank

"However, once India's growth rate catches up with China's, it is bound to be hyped. That is because highlighting India's economic figures is done for political ends," it said.

Prime Minister Narendra Modi will keep beefing up support for investment-friendly policies. The country has its advantages, but also huge problems, such as unbalanced industrial structure and poor hardware to sustain the manufacturing, or resistance from local governments against decisions from the central government, it said.

"So, anything can happen in India, and it is too early to portray a rosy picture of its economy for now," it said.

The article also noted that some will argue that India's new growth figures are due to the revised calculation of GDP, which was launched in January.

"Whether the amendment was based on international measurements or its own national standards is not yet clear either. Therefore, it is too soon to draw any conclusion," the article said.

"What is clear, however, is that given the Indian economy's low starting point, low labour costs and enormous market potential, it is highly likely that the country will enjoy a rapid development in the future, if there is no global economic recession in the years to come," it said.

"But in spite of all these, a starry eyed view is the last thing India needs for now, because its way of calculating GDP may need reforming, so does its economic structure," it added.
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