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http://www.livemint.com/Politics/Lm5U9AvkwQn9tqmHkI0eTO/Are-shell-companies-behind-the-overestimation-of-GDP.html

Nagaraj says many of these firms, especially in the financial sector, are shell companies defined as “a non-trading company used as a vehicle for financial manoeuvres or kept dormant for future use in some other capacity” to hide or divert profits, inflate costs, circumvent rules to maximize return on investment for the entire group.

He suspects that a majority of such private limited companies included by the CSO in its GDP estimation are fictitious and add little to domestic output on a regular basis. “Often, such companies are handmaidens of business groups to navigate the complex regulatory and tax network, so as also to corner licences and incentives,” Nagaraj said.