New NSSO study reveals GDP calculated on false data

New Delhi | Recent reports surfaced have pointed out that the GDP numbers that are declared by the government may not be so accurate.

Key data used to compute GDP numbers under a new adopted method are now turning out to be dodgy, the Mint newspaper revealed in a potentially explosive report quoting the NSSO.

The GDP series is prepared by the Central Statistics Office, the government agency that coordinates all statistical activity.

The NSSO study gave out the information that 36 per cent of the companies taken into account for the new GDP calculation are either untraceable or had been categorised wrongly.

There is a big possibility that when these companies are accounted for, the GDP numbers will drop down.

The disputable figures pertain to the MCA-21 database of companies of the Ministry of Corporate Affairs. The ministry had deemed these companies as “active companies” — those that have filed returns at least once in the last three years.

In 2015, the BJP government had changed its base year for the GDP calculations from 2004-2005 to 2011-12.

This move led to a sharp decrease in the estimate for the UPA government.

While the old series pegged the growth for 2010-11 at 10.26 per cent, the highest ever achieved by the Indian economy, the revised base year brought it down to 8.5 per cent.

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