New GDP method portrays faster growth in bad year!
28 Feb 2015 11:11 PM GMT
Government's new GDP methodology is "puzzling" for none other than Chief Economic Advisor Arvind Subramanian, who on Friday said the new numbers show growth to have accelerated during 2013-14 despite that being a "kind of bad year".
"I am puzzled as I said because the fact that...especially what happened in 2013-14, that number is puzzling because that is a kind of bad year, yet growth accelerated," Subramanian said. He was replying to a query on if he thinks there is a case to revisit the new methodology for measuring Gross Domestic Product( GDP).
"The balance of evidence shows that India is still a recovering economy not a surging economy," the Chief Economic Adviser added.
Subramanian, however, said that everybody needs to reflect on the numbers to understand why they are and what they are but meanwhile they have to use that number.
"I am puzzled as I said because the fact that...especially what happened in 2013-14, that number is puzzling because that is a kind of bad year, yet growth accelerated," Subramanian said. He was replying to a query on if he thinks there is a case to revisit the new methodology for measuring Gross Domestic Product( GDP).
"The balance of evidence shows that India is still a recovering economy not a surging economy," the Chief Economic Adviser added.
Subramanian, however, said that everybody needs to reflect on the numbers to understand why they are and what they are but meanwhile they have to use that number.
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