GDP data revision: Govt says it's revised base, not baseless
India's statistics ministry defended its latest GDP growth figures. The ministry cited improved data sources and methodologies for the estimates. It explained the GDP deflator differs from retail and wholesale inflation measures. Revisions to GDP data are a normal part of economic accounting. The government stressed the new GDP series better reflects economic activity.
The Indian government has defended its latest GDP estimates, asserting that the revision does not stem from a baseless calculation. Critics have raised concerns over the reported 7.8% growth for the April-June quarter, citing a downward revision in GDP for the same period and a low GDP deflator of 2.5%. However, the ministry explained that the new series, with 2022-23 as the base year, incorporates improved data sources, methodologies, and a broader coverage of items in price calculations.
This revision has led to a 3.8% decrease in the estimated size of India's economy in FY25, as well as changes in growth rates. The ministry emphasizes that the GDP deflator does not need to align with inflation figures from the Consumer Price Index (CPI) or Wholesale Price Index (WPI), as they have different coverage and weights.
The revised figures indicate a 8.6% real GDP growth in the January-March quarter, up from the previously reported 7.8%.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
