3 hrs ago
SBI Defends 7.8% GDP Growth Amid Data Doubts
India reported that its economy grew by 7.8% in the latest April-June quarter.
Some experts and Congress leaders questioned whether that number was calculated fairly.
SBI researchers said the criticism came from comparing figures made using different base years.
The latest GDP value was Rs 88.3 lakh crore.
The comparable revised value from the previous year was Rs 80.4 lakh crore.
SBI said those two numbers produce the reported growth rate.
It said comparing the latest number with the older unrevised figure produces a misleading result.
SBI also explained that GDP figures are revised when better or newer information becomes available.
The researchers said revisions can raise or lower earlier estimates.
SBI researchers rejected doubts about India’s reported 7.8% GDP growth in the latest April-June quarter.
SBI economist Soumya Kanti Ghosh said critics incorrectly compared the latest figure with an unrevised older estimate.
The latest GDP figure was Rs 88.3 lakh crore, compared with a revised Rs 80.4 lakh crore for the corresponding quarter.
Ghosh said GDP revisions can move figures upward or downward and are intended to incorporate newer information.
Former RBI governor Raghuram Rajan, former finance secretary Subhash Chandra Garg and some Congress leaders had raised questions about the data.
- Who
- SBI researchers, including Soumya Kanti Ghosh, defended the data; Raghuram Rajan, Subhash Chandra Garg and some Congress leaders raised doubts.
- What
- A dispute arose over the calculation and interpretation of India’s reported 7.8% GDP growth.
- Where
- India.
- When
- The latest figures covered the April-June quarter, and the relevant NSO release was issued on August 31; the SBI response was issued on Wednesday.
- Why
- SBI said critics used an older unrevised GDP figure and failed to compare the latest figure with the corresponding revised figure.
Critics of the GDP Data
SBI’s Defense of the Data
Interpretation of growth
Critics of the GDP Data
Raghuram Rajan, Subhash Chandra Garg and some Congress leaders raised doubts about the reported growth data; some estimates cited in the report put growth at 2.6%.
SBI’s Defense of the Data
SBI said the 2.6% estimate resulted from comparing the latest Rs 88.3 lakh crore figure with an older Rs 86.1 lakh crore figure that was not comparable.
Choice of comparison
Critics of the GDP Data
Critics questioned whether the revised GDP figures supported the reported growth rate.
SBI’s Defense of the Data
SBI said the correct comparison was Rs 88.3 lakh crore with the revised previous-year figure of Rs 80.4 lakh crore.
GDP revisions
Critics of the GDP Data
The article reports doubts about the effect and interpretation of the revised data.
SBI’s Defense of the Data
SBI said revisions are a normal part of producing GDP statistics and incorporate more recent factors; past quarterly figures have been revised both upward and downward.
Key facts
- Reported growth
- 7.8% for the latest April-June quarter
- Latest GDP value
- Rs 88.3 lakh crore
- Revised comparison value
- Rs 80.4 lakh crore for the corresponding quarter a year earlier
- Older comparison value
- Rs 86.1 lakh crore under the previous base-year series
- Previous base year
- 2011-12
- Current base year
- 2022-23
- SBI position
- GDP revisions are legitimate and may move estimates upward or downward
Quotes
Soumya Kanti Ghosh
SBI Group Chief Economic Adviser and member of the 16th Finance Commission
“It is always fair to look into the data more rigorously and more meticulously instead of just saying this number is not correct or this should have been the number.”
NDTV
“It is difficult to understand why some sections/people are unable to digest that the Indian economy grew by a robust 7.8 per cent.”
NDTV
Sources
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