Optimism the Indian economy will soon recover, despite no sign that it is anywhere near doing so, has increasingly led forecasters to overestimate industrial production growth.
Incessant official revisions to the data, after initial forecasts are proved wrong, also mean investors and companies don’t have a clear and timely view.
This too could be another thing holding back Asia’s third largest economy.
The latest industrial data came as a shock this week.
Factory output contracted by 2.2 percent in June from a year earlier, nearly twice as bad as the 1.2 percent fall predicted in the Reuters poll.
That was the eleventh month since January 2012, and the third in a row, in which economists have overestimated it.