India's Real Growth Rate

Officials and business leaders meeting in New Delhi could not have asked for more auspicious news as they gathered last week for the World Economic Forum's annual India Economic Summit. While the three-day event was in progress, the Bombay Stock Exchange's Sensex index hit all-time highs. That milestone was followed by the cheering news that the Indian economy grew at an 8% rate during the quarter ending Sept. 30, underscoring once-moribund India's claim to being the fastest-growing free-market democracy in the world.

There's a reason, however, that the boast requires qualifiers. Undemocratic, not-so-free-market China continues to set...