27 January, 2021

The Numbers Game

I don’t think it is going to be so easy for us to so quickly consume the new GDP numbers.

The Numbers Game
outlookindia.com
-0001-11-30T00:00:00+05:53

The most important takeaway from the new GDP numbers (6.9 per cent growth in 2013-14) is that the economy has not been as bad as it had been painted all along. It implies a complete redrawing of the picture of the economy. The problem remains, though, because the GDP numbers do not tie well with the other independently available data.

If industrial production has grown so well, then why has credit offtake not reflected it? If we say the mining sector did not see such a substantial fall, then how do we explain the fall in gas production or iron ore production and the fall in commercial vehicles production? So, I don’t think it is going to be so easy for us to so quickly consume the new GDP numbers. It’s a bit of a challenge.

There is no doubt that a new base year should be chosen and the number should be in line with international practices. The challenge is in making sense of the new numbers along with every other number that we have. They do not mesh. So do we believe in the new GDP numbers or the other parameters? If you believe...

unsub

THIS ARTICLE IS PRICELESS...

To read this piece, and more such stories in India's most exciting and exacting magazine, plus get access to our 25-year archives goldmine, please subscribe.


In this article:

Latest Magazine

February 01, 2021
content

other articles from the issue

articles from the previous issue

Other magazine section