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Amitabh Kant Defends India’s Revised GDP Methodology Amid Debate
India changed the way it calculates GDP, which measures the size of the economy.
Amitabh Kant said the old and new numbers should not be compared directly.
He compared doing so to comparing apples with oranges.
The two methods use different data and calculations.
This is why some FY26 estimates look very different.
Kant said the revised method shows real growth of about 7.8%.
He stressed that the economy did not suddenly grow by 60%.
He said updating the method helps reflect changes in India’s economy, including digital payments, GST and digitisation.
Amitabh Kant said GDP figures from different statistical series should not be directly compared.
He attributed differences between the 2011-12 and 2022-23 series to changed methodology and data frameworks.
Kant said the revised calculations indicate real growth of approximately 7.8%.
FY26 GDP estimates differ sharply between the old and new methodologies, but he said this does not represent 60% economic growth.
He argued that base-year revisions are needed to reflect changes such as digital payments, GST and wider digitisation.
- Who
- Amitabh Kant, former chief executive officer of NITI Aayog, addressed the GDP methodology debate.
- What
- He defended India’s revised GDP methodology and cautioned against comparing figures from different statistical series.
- Where
- India.
- When
- The discussion concerns the first quarter and FY26 estimates for the current financial year; no specific date is provided.
- Why
- Kant said methodology and data frameworks have changed, and that base-year revisions are necessary to reflect changes in economic activity.
Methodology Critics
Amitabh Kant’s Defense
Interpreting different GDP estimates
Methodology Critics
The differing figures have prompted questions and controversy over whether the reported growth numbers are credible.
Amitabh Kant’s Defense
Kant said the figures should not be directly compared because they were calculated under different series and data frameworks.
Meaning of the FY26 increase
Methodology Critics
A comparison between the old-series estimate of ₹201 lakh crore and the new-series estimate of ₹322 lakh crore can appear to show a dramatic increase.
Amitabh Kant’s Defense
Kant said the difference does not mean the economy grew by 60%; it reflects the revised methodology.
Nominal GDP difference
Methodology Critics
The differing nominal GDP estimates contribute to debate over how the revised figures should be understood.
Amitabh Kant’s Defense
Kant said the gap between ₹357 lakh crore under the old method and ₹345 lakh crore under the new method does not mean the economy contracted in nominal terms.
Key facts
- GDP series compared
- The older series uses a 2011-12 base year, while the newer series uses a 2022-23 base year.
- Reported real growth
- Kant said the revised calculations indicate real growth of approximately 7.8%.
- First-quarter estimate
- Kant cited approximately ₹75 lakh crore, or ₹80 trillion, under the rebasing framework, compared with ₹81 lakh crore under another calculation.
- FY26 old-series estimate
- The first advance estimate under the 2011-12 series put GDP at ₹201 lakh crore.
- FY26 new-series estimate
- The second advance estimate under the new series placed GDP at ₹322 lakh crore.
- Nominal GDP estimates
- Kant cited ₹357 lakh crore under the old methodology and ₹345 lakh crore under the new methodology.
- Examples of economic changes
- Kant pointed to expanded digital payments, GST implementation and increased digitisation since 2015.
Quotes
Amitabh Kant
Former NITI Aayog CEO who defended the revised GDP methodology
“It is not appropriate to compare GDP data across various series,” he said, pointing to the difference between the GDP estimates under the 2011-12 series and the new 2022-23 series. [This quote includes attribution text and is not strictly standalone.]”
businesstoday.in
Sources
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