Important That The Statistics Coming Out Of India Are Transparently Communicated Because Everybody Is Watching India: IMF Chief Economist
Gita Gopinath expressed concern over India's growth rate and how it is calculated.
The International Monetary Fund’s (IMF) chief economist Gita Gopinath has raised doubts about India’s growth rate and expressed her concerns over how India calculates it.
Gopinath told Sunthar Rajagopal of CNBC, “With regards to the newer numbers that are coming out, we are paying close attention to it, we are speaking closely to our colleagues in India, and then we will make a determination based on that.”
“There were important revisions that were made in 2015 as a part of modernising India’s national accounts statistics, so that is certainly welcome. That said there are still some issues that need to be fixed and this we have flagged before with respect to the deflator that is being used for estimating real GDP…” the chief economist reportedly said.
The GDP deflator is a measure of inflation. It is the ratio of the value of goods and services an economy produces in a particular year at current prices, to that of prices that prevailed during the base year. It helps capture the extent of the increase in GDP due to higher rates rather than an increase in output.
Gopinath said, “India is projected to be growing over seven per cent, both in 2019 and 2020, which makes it one of the fastest growing large economies of the world, which is why it is even more important that the statistics coming out of India are transparently communicated because everybody is watching India at this point.”
Two members of the National Statistical Commission (NSC) had resigned earlier citing the deliberate suppression of the NSSO report which had been approved by the NSC in December. The 2017-18 NSSO survey did not present a rosy picture on the employment front. Hence, to have a better chance during elections the Narendra Modi-led Bharatiya Janata Party government reportedly held it back.
The concerns of the Internation Monetary Fund’s chief economist come as a setback to the Modi-led government which keeps citing rankings of international agencies as an indicator to its economic successes.