7 reasons why FY18 GDP growth forecast should be viewed with caution

Advance estimates have been compiled by extrapolating numbers available for 6-8 months against the full year, so it is more of a statistical exercise and does not take into account any new information

The government on Friday said it expected the country's gross domestic product to grow 6.5 per cent on a year-on-year basis, compared with 7.1% in 2016-17. But CARE Ratings Chief economist Madan Sabnavis wants to read the numbers brought out by the Central Statistics Office (CSO) with caution. He gives seven reasons for that in this Business Standard special piece
 
The first advance estimates for FY18 GDP growth should be viewed with caution. This is because the estimates have been compiled by extrapolating numbers available for 6-8 months on different variables against the full year. Hence, it is more