'To bring more clarity': Centre issues FAQs after oppn red flags GDP figures
The Indian government has released FAQs to clarify its GDP calculation methodology following opposition criticism regarding a 7.8% growth figure. The ministry explained technical concepts like double deflation to address concerns about manufacturing sector data.
Why it matters
Transparency in economic data is critical for investor confidence and political accountability in a major emerging economy.
NEW DELHI: The Centre on Wednesday released a set of FAQs to clarify the methodology behind India’s latest GDP estimates, after the opposition raised questions over the credibility of the 7.8% growth recorded in the April-June quarter.The ministry of statistics and programme implementation (MoSPI) said the FAQs explain key issues including the use of double deflation, negative implicit deflators, differences between GDP deflator, CPI and WPI inflation, the gap between nominal and real GVA, statistical discrepancies and revisions to the GDP series.The government said the updated annual and quarterly GDP estimates, based on the 2022-23 base year, were released on August 31 using new data sources and methodologies, including the new series of the Output Producer Price Index (PPI) and Banking Services Price Index.The clarification comes after Congress leaders questioned the 7.8% real GDP growth figure and pointed to the revision in the previous year's nominal GDP estimate.FAQ's explained by…
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