Massive miscalculations found in India's GDP data -The Hindu

[leebrath]

luks like deliberately under-calculated...

 

[Gandhi G in da house]

i hope this is true and not just a measure by the government to improve it's chances of winning the next elections. Not that .8 % will make a huge difference.

 

[Chanakya's_Chant]

Soon Herr Prime Minister of BD will also correct our growth rate to 50%!

Are you sure that calculation is correct this time?

So if last year's GDP was actually higher than reported, then this year's slowdown is more severe than it seems. Does India have any hope of 5% growth with this new revelation?

so with the miscalculation corrected did india gain anything all of sudden? lol
before or after the miscalculation india is still the same.

Inclusion of industry figures could have taken GDP to magical 6 per cent mark

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Government calculations show that growth could have been as much as a percentage point higher in the past two years once data from the Annual Survey of Industries is factored in.

NEW DELHI: The UPA government has received flak for the country's growth plunging to a decade low of 5% last year, but had it paid greater attention to ensuring more accurate industrial statistics, the numbers would possibly have looked a lot better.

Government calculations show that growth could have been as much as a percentage point higher in the past two years once data from the Annual Survey of Industries is factored in.

In the advance estimates of gross domestic product, industrial growth is derived from the Index of Industrial Production (IIP), which is considered by policymakers and economists to be riddled with faults despite a recast a few years back and is again under review. GDP growth was 6.2% in 2011-12 and 5% in 2012-13. The corresponding industrial growth in these years was 3.5% and 2.1%, respectively.

The new assessment of far better numbers is based on similar revisions earlier and an analysis of corporate sales data compiled by the Reserve Bank of India.

​

Advance GDP estimates for 2009-10 pegged growth at 7.2%, which was revised to 8.6% when the final numbers were available. Next year, the advance 8.6% estimate was revised to 9.3%. The revision was based on fresh data from the Annual Survey of Industries (ASI), which comes with a two-year lag.

"There is a particular chance of a substantial revision," said Pronab Sen, chairman of theNational Statistics Commission. "ASI captures activity of small units better."

The government's internal calculations based on corporate sales data suggest a significant upward revision once the final numbers are issued, an assessment private experts endorse.

The sample of companies analysed showed a 19.5% rise in sales in 2011-12 and 9.4% growth in 2012-13. Based on the past divergence in ASI and IIP data and this sales growth, the government expects final growth to be bumped up at least one percentage point in 2011-12 and a little less in 2012-13.

The ASI for 2011-12 will likely be available this week and could bring some statistical relief for the UPA, which suffered a severe drubbing in the recent assembly elections.

"We have seen significant revisions in the GDP... There is a continuous downward bias in the industrial production numbers that needs to be fixed to make the data more robust," said DK Joshi, chief economist, Crisil.

India's grew at its slowest pace in 10 years in 2012-13, as per official data. Finance minister P Chidambaram had questioned the advance estimates for 2012-13 that had pegged growth at 5%, saying it was based on "dated data". However, Joshi said directionally the story will not change. "Economy slowed in 2012-13 as compared to 2011-12," he said.

Source:- Inclusion of industry figures could have taken GDP to magical 6 per cent mark - Economic Times

 

[shree835]

so with the miscalculation corrected did india gain anything all of sudden? lol
before or after the miscalculation india is still the same.

hmmm...Same question come up...What did you got by this trolling...Before or After this...???...Is there any Improvement in your country economy...???

 

[cloud_9]

India will on January 30 revise its Gross Domestic Product (GDP) growth rate for 2011-12 from 6.2 to about 7 per cent. Faulty data earlier underestimated industrial output by about 7 percentage points, sources in the Prime Minister’s Economic Advisory Council told The Hindu . “India has been overstating the slowdown in the economy, this correction will address that.”

The revision in the data assumes significance in the wake of the severe Opposition criticism of the Manmohan Singh government’s performance in economic management.

GDP data for a fiscal undergoes three rounds of revisions; the process takes three years. The Central Statistics Office is scheduled to release the Second Revised Estimate for 2011-12 on January 30. The First Revised Estimate was 6.2 per cent.

The Second Revised Estimate will use the Annual Survey of Industries (ASI) findings in place of the Quick Estimates of the Index of Industrial Production (IIP). The ASI data shows industrial output in 2011-12 grew by 23.6 per cent in nominal and about 15-16 per cent in real terms, the sources said.

The IIP data had “significantly” underestimated the real factory output growth for the year at 2.9 per cent.

2011-12 GDP growth revised up - The Hindu

Actually, our GDP growth rate for 2011-2012 was 7%. Government miscalculated it as 6.2%. Now, Govt. should check this year's data too. Totally opposite to China.India should learn from them.

So they have started manipulating the data now

They will now jack up the numbers to showcase the 7% growth story.The economist PM doesn't know that there are plenty of other indicators that show the health of the economy......most of them are in red

The real growth is around 5 to 5.5 %.

 

[Anubis]

All these so called growth rates are pointless when the situation on ground remains the same. Except for the likes of the Ambanis and our corrupt politicians, the ordinary souls continue to fight to make both ends meet.

Ofcourse they will struggle....if they don't struggle who will grow your economy....people sitting in comfy chairs in air conditioned rooms?That's capitalism.....

 

[dray]

Soon Herr Prime Minister of BD will also correct our growth rate to 50%!

You guys are lucky to have such a great Prime Minister.