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LATEST NEWS UPDATES | India is finally trying to clear the air around its controversial GDP numbers -Madhura Karnik

India is finally trying to clear the air around its controversial GDP numbers -Madhura Karnik

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published Published on Oct 22, 2016   modified Modified on Oct 22, 2016
-Scroll.in / qz.com

The government has set up five committees to review data to calculate major indicators such as the GDP, IIP and inflation.

More than 19 months after the statistical tumult began over India’s GDP, the Narendra Modi government is finally trying to fix the mess.

India’s GDP numbers have been receiving flak since a new calculation was introduced in January 2015. Overnight, India’s GDP growth accelerated from 4.7% to 6.9%. It didn’t make sense to many, including the country’s chief economic advisor, Arvind Subramanian, or the former Reserve Bank of India governor, Raghuram Rajan.

The Indian government has now formed five committees that will review data used for major economic indicators like GDP, index of industrial production and inflation, the Economic Times reported on October 18. The primary aim is to make the data collection process more transparent.

The committees will also release data that is segregated according to industries and geographies, which is currently unavailable.

“These committees are expected to cover the requirement of statistics for estimation of GDP, data governance for quality, timelines and credibility of collected data and derived estimates, provide for data integrity and audit trials of a National Statistical System,” the ministry of statistics and programme implementation said in directive, according to the Economic Times.

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Scroll.in, 20 October, 2016, http://scroll.in/article/819444/india-is-finally-trying-to-clear-the-air-around-its-controversial-gdp-numbers


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