It seems that finally India grew faster than China in 2010.Surprisingly it happened without much fanfare. The reasons for this anomaly are even curious to read. Unlike most major economies that calculate GDP by expenditure method, India calculates its GDP by Factor Cost method. That means India adds up the income earned to arrive at GDP where as other major economies do so by adding expenditure.

Although both methods should lead to the same figure, taxes and subsidies get in the way. Once these adjustments are made India grew by 10.4% in 2010; China by 10.3%!