GDP Numbers Rigged? Former Finance Commission Chief Dismisses Claims As ‘Completely Baseless’

New Delhi: N.K. Singh, the former Finance Commission chairman and president of the Institute of Economic Growth, has dismissed accusations of tampering with India's GDP figures as "completely baseless." Singh was addressing concerns raised by former Finance Secretary Subhash Chandra Garg regarding the methodology used to determine India's GDP growth.

Singh explained that periodic revisions to the GDP base year and calculation methodology are standard practices observed globally as economies evolve and new data becomes available. These revisions are designed to better capture changes in the structure and performance of the economy. Singh emphasized that the new framework should not be perceived as an attempt to manipulate economic growth numbers but rather an effort to make India's GDP estimates more comprehensive and reflective of structural changes.

The revised methodology, according to Singh, incorporates more data and includes a broader range of economic activities, which enhances the accuracy of India's GDP estimates. He linked India's recent GDP growth of 7.8% with the country's upgraded sovereign credit rating, describing the recent developments as a "moment of celebration."

India regained its 'A' credit rating after a 38-year absence, a status it had held in 1988. Singh likened the combination of robust GDP growth and the credit rating upgrade to a "happy congruence," arguing that both elements underscore the underlying strength and resilience of the Indian economy.