Insta
Former chief economic adviser Arvind Subramanian (Mohd Zakir/Hindustan Times via Getty Images)
In an extensive rebuttal to the academic paper of former chief economic advisor Arvind Subramanian which asserted that India’s GDP growth had been substantially overestimated by successive governments, the Economic Advisory Council (EAC) to the Prime Minister has released a note clarifying the methodology of calculating the country’s GDP.
It explains that the switch to a new methodology in 2015 which took 2011-12 as the base year led to two notable improvements , the first being the inclusion of the MCA21 database in GDP estimation, while the second was the implementation of the recommendations of the internationally recognised System of National Accounts (SNA), 2008.
The note states that Subramanian cherry-picked data to meet his conclusion that country’s GDP was being overestimated from 2011-12 onwards. It asserts that on the other hand he overlooked important inputs such as tax collection data citing salient changes in the tax regime.
It is argued that most of the 17 indicators Sumbramanian used in his paper to claim GDP mis-estimation were directly sourced from the Center for Monitoring Indian Economy, which is a private agency that itself gathers information from a multitude of different places, and is not a primary source of information.
In his academic paper entitled, “India’s GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms, and Implications”, the former chief economic advisor had claimed that the India’s GDP growth rate between 2011 to 2017 was actually closer to 4.5 per cent rather than 7 per cent as stated by the official figures.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest