SBI rebuts criticism of India’s GDP revisions
The SBI has refuted allegations regarding inaccuracies in India's GDP revisions, dismissing the claims as fictional and illogical. The report from SBI Ecowrap asserts that criticisms regarding GDP adjustments in recent quarters are due to an erroneous comparison of different statistical series. The report addresses the recent GDP growth announcement of 7.8% for Q1 FY27, countering the notion that the figure is incorrect.
It clarifies that the debate is fueled by a misunderstanding of the statistical process. The SBI report highlights that revisions in GDP are a standard practice when a reference year changes, and that the extent of these adjustments is not consistent across different administrations. It further explains that the majority of the revision in Gross Value Added (GVA) is concentrated in specific sectors like Trade, Hotels, Transport and Communication, while other sectors show positive revisions.
The report also reassures that the new deflator methodology can be replicated using publicly available price and volume indicators, resulting in estimates that align closely with those published by the Ministry of Statistics and Programme Implementation (MoSPI).
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