Row has erupted as revised GDP data slashes growth rate in UPA era
On Wednesday, the government re-estimated the GDP linked to 2011-12 prices. This led to a lowering of the growth rate during the UPA regime according to the revised GDP data. This led the Congress party to slam the government as a desperate attempt of a “defeatist Modi government”. This is to undermine the growth story over the past 15 years.
The back series data from 2004-05 to 2011-12 showed that showed that GDP growth rate in 2011-12 has been revised down to 5.2 per cent from the previous 6.6 per cent expansion which was based on the 2004-05 base year.
Similarly, growth for 2010-11 has been pared to 8.5 per cent from the earlier 10.3 per cent under the old series. The base year is revised periodically. That is to reflect the changes taking place in economy. But the revised GDP data says otherwise.
The Central Statistics Office (CSO) back series data is in sharp contrast to the numbers released a panel on real sector statistics set up the National Statistical commission.
The report the panel was headed Sudipto Mundle. He is an emeritus professor at the National Institute of Public Finance and Policy. He had shown that the economy had grown 10.8 per cent in 2010-11. But the government had said that the data provided the panel was “not official”. This triggered a war of words with the opposition party.
The Congress was quick to criticize the latest CSO numbers. The party said in a statement, “Modi government and its puppet Niti Aayog want the people to believe that 2+2=8! Such is the gimmickry, jugglery, trickery and chickanery being sold as back series data.”
A sharp political debate has erupted. This has happened just before the 2019 general elections. Modi government’s handling of the economy and the latest data will surely trigger responses from both sides.
The revised GDP data has shown the shortcomings of the UPA government. Are they to be trusted?
