According to latest figure released this week, India's economy officially took over China, in terms of growth rate. India's economy is now the fastest growing in the world. In three months to December, GDP grew by 7.5%, which brings the growth to 7.6% for 2015.

Though, we at FxWirePro, believer of India's economic prowess and its ability to be fastest growing in the world, we just don't think it has happened yet. Current growth rate officially released, might actually be overstating it by 2.5-3 percentage points.

First and foremost, we need to remind that a little more than a year ago, India's GDO got rebased from 2004-2005 to 2011-12, so large chunk of this improvement could be due to base effect.

This base effect can be quite large. This change added 2.2% to India's GDP in 2013/14 and the figure for revised from 4.7% to 6.9% for that year.

Even then, the figure still looks a bit extended, given the performance of other indicators.

• India's economy was on the verge of double digit growth back in 2007 and new capital expenditure was hitting well above $15 billion per quarter. It has fallen since and despite bounce ingrowth it has stayed around just a few billions in 2015.
   
• Back in 2007, business optimism in India was hitting 200 mark and that now has fallen to just about 20 points above 100, with no signs of recovery.
   
• Similarly, Rail freight volume growth, which is a key indicator for growth has fallen to lowest level since 2011, and just shy of dropping to negative.
   
• Despite, Prime Minister Narendra Modi's "Make in India" dream and project, manufacturing PMI is on the verge of contracting. Even services sector, which is key contributor for GDP and employment, PMI shows growth is falling steadily and much lower than above 60 experienced during 2010.
   
• Moreover, government is struggling to finish projects and provide incentives for private sector to finish them as well. As of 2015, stalled investment projects in India, now account for almost 8% of GDP.

Unless underlying hard economic dockets provide further evidence of improvement, we would remain believer of potential growth but doubters of current figure.