')The government corrected the first-quarter economic growth rate number as measured by market transactions in less than 32 hours, as an error nearly damaged the credibility of its statistics and raised doubts about the much-touted growth story.
The Central Statistical Organization, or CSO, nearly tripled the initially estimated growth on the demand side to 10%, from 3.7% announced on 31st August, 2010, following a raise in private consumption, government expenses and investments.
The revision strengthens the belief that India may grow at more than 8.5% in the fiscal year.
Private consumption grew 3.8% and not 0.3% as reported earlier, the CSO said. The government expenditure figured has been raised to 14.2% from a negative 0.7% earlier. Investment, the statistics office said, grew 7.6%, instead of 3.7% as originally reported.
Government statistics released on 31st August, 2010, stunned economists since there were huge gaps between the numbers from the demand and supply side. The economy expanded 8.8% in the June quarter when measured by the supply side, and 3.37% if calculated on the demand side, above the accepted 0.5% difference. These numbers also contradicted the evidence of surging sales of automobiles and other durables.
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