Surprised by GDP furore, methods already in public domain: MoSPI Secy Garg

The recent controversy surrounding the new GDP series has come as a surprise to Saurabh Garg, Secretary at the Ministry of Statistics and Programme Implementation (MoSPI). The new GDP data, released on August 31, shows an impressive growth rate of 7.8%, far exceeding expectations. Garg clarified that the previous GDP numbers, which have been revised downwards, should not be labeled overestimations as it could imply systematic bias.

He emphasized that GDP is an estimation based on the best available data, which has improved over time with new indicators and sources. Garg attributed the criticism to the lack of expectations for such a high growth figure, suggesting that the data should be viewed positively rather than dismissed due to its deviation from prior expectations.

He also noted that the improvement in the real economy, partly due to government policies, has strengthened economic resilience. When questioned about the perceived lack of economic growth on the ground, Garg highlighted that GDP is just one indicator and individual perceptions may vary. He stressed that the new GDP series is the most comprehensive available, incorporating a wider range of indicators and high-frequency data.

The revision reflects the impact of digital data sources and improved data collection methods over the last decade. MoSPI has made all relevant data, including the Sources and Methods document, publicly available, dismissing criticisms of a lack of transparency in the calculation process. Garg dismissed calls for a review of the new GDP series, stating that it is the best available and built on the best data, data sources, and methods.