The Hindu·5 min read·hard

There is a large inconsistency between GDP and other data series: Former Finance Secretary Subhash Chandra Garg

K
Kunal Shankar & Santosh V. Perumal
There is a large inconsistency between GDP and other data series: Former Finance Secretary Subhash Chandra Garg
AI Summary

Former Finance Secretary Subhash Chandra Garg has raised concerns regarding the credibility of India's GDP data, citing inconsistencies and a lack of transparency in recent revisions. He argues that the government has failed to provide a clear explanation for significant downward revisions in nominal GDP.

Why it matters

Questions regarding the accuracy of economic data impact investor confidence and the assessment of India's growth narrative.

Dive DeeperCreate a free account to unlock

India’s latest GDP estimates have opened a wider debate on the credibility of official statistics, methodology, data quality and the interpretation of economic growth. While the government has defended the revised numbers citing improved coverage and methodological changes, questions remain over transparency and the sharp revisions in the size of the economy. In written responses to The Hindu , Former Finance Secretary Subhash Chandra Garg discusses the government’s defence of India’s economic estimations, his concerns over data quality, alleged political interference in the country’s statistical inquiry, policy implications and the credibility challenges surrounding India’s growth narrative.

India has historically linked new GDP series to old ones through splicing, re-estimation and back-series construction. Why shouldn’t MoSPI construct a transparent bridge between the 2011–12 and 2022–23 series before asking the public to accept the growth rate? What would that bridge need to show?

Continue reading on Headlinne

Create a free account to read the full article.

Read full article →
economypolitics

Get smarter about the news

Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.

Create free account

Already have an account? Sign in