Govt rebuts ex-CEA’s contention on GDP; claims right methodology followed

Agencies
June 12, 2019

New Delhi, Jun 12: The government on Tuesday rebutted former Chief Economic Adviser Arvind Subramanian's contention regarding over-estimation of the Gross Domestic Product (GDP) data and stated that proper methodology was followed in calculating the country's overall economic growth estimates.

"The GDP estimates released by the ministry are based on accepted procedures, methodologies and available data and objectively measure the contribution of various sectors in the economy," the Ministry of Statistics & Programme Implementation said in its rebuttal.

The rebuttal comes after Subramanian questioned the change in GDP calculation methods and numbers effected last year.

In his recent research paper published by Harvard University, the former CEA has said there is a possibility of substantial overestimation in the growth figures while stating that the actual GDP growth between 2011-12 and 2016-17 was around 4.5 per cent as against 7 per cent.

Subramanian has suggested that India's GDP growth estimate has been overestimated by around 2.5 percentage points between 2011-12 and 2016-17, a period that covers the years during both the UPA and the NDA governments.

The adoption of a new GDP series to measure the country's economic growth, months after the government itself slashed previous UPA-era GDP growth rate for 2010-11 from the earlier estimated 10.3 per cent to 8.5 per cent, has fuelled controversy.

However, the ministry said: "Estimation of GDP in any economy is a complex exercise where several measures and metrics are evolved to better measure the performance of the economy".

According to the ministry, the purpose of global standardisation and comparability, countries follow the System of National Accounts (SNA) evolved in the UN after elaborate consultation.

"In India, the Base Year of the GDP series was revised from 2004-05 to 2011-12 and released on 30 January, 2015 after adaptation of the sources and methods in line with the SNA 2008," the ministry said in its rebuttal.

Besides, the ministry pointed out that the methodology of compilation of macro aggregates has been discussed in detail by the Advisory Committee on National Accounts Statistics (ACNAS) comprising experts from academia and institutions like the Reserve Bank of India (RBI).

"It may be noted that decisions taken by these Committees are unanimous and collective after taking into consideration the data availability and methodological aspects before recommending the most appropriate approach," the ministry said.

As per the statement, structural changes in the economy have necessiated the revision of the base year of macroeconomic data points such as "GDP, Index of Industrial Production (IIP), Consumer Price Index (CPI) etc" on a periodical basis to ensure that indicators remain relevant.

"Such revisions not only use latest data from censuses and surveys, they also incorporate information from administrative data that have become more robust over time."

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News Network
February 22,2020

New Delhi, Feb 22: China is delaying grant of clearance to India's proposal to send an Indian Air Force flight to carry relief material for people affected by coronavirus in the neighbouring country and bring back Indians from its city of Wuhan, official sources said Saturday.

India was to send a C-17 military transport aircraft to Wuhan, the epicentre of the coronavirus outbreak, on February 20 but the plane could not take off as permission was not granted for the flight.

"China is deliberately delaying grant of clearance for the evacuation flight," a high-level source said.

The aircraft was to carry a large consignment of medical supplies to China and bring back more Indians from Wuhan.

Sources said the Chinese side continued to maintain that there was no delay in granting permission for the flight to go, but "inexplicably" the clearance has not been given.

In a letter to President Xi Jinping earlier this month, Prime Minister Narendra Modi conveyed India's solidarity to the people and government of China in meeting the challenge of the coronavirus outbreak and offered to provide assistance to the country.

India then put together relief supplies in pursuance of Modi's commitment as a token of India's solidarity, particularly in the 70th year of the anniversary of diplomatic relations between the two countries.

"These supplies have been offered even as India faces tremendous shortage itself, given our ethos of helping others in their hour of need," said a source aware of the issue.

The items being supplied are gloves, surgical masks, feeding pumps and defibrillators based on the requirements as indicated by the Chinese side.

India's national carrier Air India has already evacuated around 640 Indians from Wuhan in two separate flights.

According to estimates, over 100 Indians are still living in Wuhan. A sizeable number of countries have evacuated their citizens from China and restricted movement of people and goods to and from the country in view of the massive outbreak of coronavirus there.

Indian nationals in Wuhan continue their long wait for the flight. The delay is causing them and their family members in India tremendous mental anguish, said the sources.

They said relief and evacuation flights from other countries including by France are allowed to operate by China but the permission has not come through in India's case.

"Are they not interested in Indian aid provided as our token of support? Why are they creating roadblock in evacuating our nationals from Wuhan and putting them under hardship and mental agony?" said a person aware of the issue.

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News Network
May 20,2020

Washington, May 20: The United States recorded another 1,536 coronavirus deaths over the past 24 hours, the Johns Hopkins University tracker said.

That figure, tallied as of 8:30 pm (0030 GMT), raises to 91,845 the total number of COVID-19 deaths in the US.

The US tops the global rankings both for the highest death toll and the highest number of infections, with more than 1.5 million cases.

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News Network
May 15,2020

Thiruvananthapuram: Kerala activist Rehana Fathima has been asked to take compulsory retirement from BSNL after she was embroiled in Sabarimala row.

Stating that her attempt to enter the shrine of celibate god in 2018 had spoiled the reputation of the company among customers, the BSNL, in its order asked her to take compulsory retirement, further claiming that her acts were “subversive of discipline and amount to misconduct”.

She was suspended from service following her arrest in November 2018 over Facebook posts.

Fathima, who is a technician with the state-run communications company, said she will explore legal remedies against the order sent by her employer.

The Fathima hit headlines when she attempted to enter the Sabarimala shrine, which has traditionally been closed to women in the age group of 10-50 years.

She did after the Supreme Court order allowing entry of women in the age group of 10-50.

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