Finance Ministry rejected the criticism of showing increased GDP, said- growth is calculated according to pre-determined standards
Govt dismisses criticism regarding inflated GDP: The Finance Ministry said that critics should also look at other data like PMI, bank credit growth, increased capital expenditure, and consumption patterns. India's GDP growth rate was 7.8 percent in the first quarter of the financial year 2023-24. This is according to the income and production approach.
The criticism of showing increased GDP by the Finance Ministry has been rejected outright. It was also said that the Income Side Approach, which has been in practice by the government for a long time, has been used to calculate economic development.
Apart from this, the Finance Ministry said that critics should also look at other data like PMI, bank credit growth, increased capital expenditure, and consumption patterns. At the same time, he said that after the data for the first quarter came out, many international agencies revised their GDP estimates.
India's GDP growth rate was 7.8 percent in the first quarter of the financial year 2023-24. This is according to the income and production approach. At the same time, it comes less with the expenditure approach. For this, balancing data – Statistical Discrepancy is added. Anomaly is positive and negative.
It was further written by the Ministry that the statistical discrepancy was negative in FY 23 and FY 22. According to the expenditure approach, this is higher than the growth rate of 7.2 percent reported in FY23 and the growth rate of 9.1 percent reported in FY22.
India's former Chief Economic Advisor Arvind Subramanian argued in an article that India's GDP is measured from the expenditure approach rather than the production approach.
At the same time, an earlier allegation was made by Congress that the real GDP numbers are being inflated because these GDP growth rates do not accurately reflect the effect of inflation.
