BJP MPs oppose House panel report seeking review of GDP calculation method

The draft report states that detailed examination reveals several inadequacies in the GDP measuring mechanism

BJP MPs who are members of Parliament's Estimates Committee on Saturday said they will not let the panel's draft report which recommends a review of the mechanism to calculate GDP to be adopted in its current form.  

The draft report on 'Measuring Growth, Employment and Income' created a rift among the BJP members of the panel, as veteran party leader Murali Manohar Joshi, who heads the committee, is keen for its adoption while the other party parliamentarians, led by Nishikant Dubey, are against it.   

A BJP MP, who is a member of the panel said, it is absolutely incorrect for the report to question the government's mechanism to calculate GDP data.

It is being done according to global standards and the current government is implementing the same methodology which was used by the previous ones, the MP said.

According to sources, Dubey may also give a dissent note against the draft report and it will be adopted only after amendments.

The draft report, which was tabled in the Estimates Committee's meeting on Thursday, states that detailed examination reveals several inadequacies in the GDP measuring mechanism, such as depletion of natural resources is not being taken into consideration. 

It also said there is no mechanism to assess whether an increase in Gross Domestic Product (GDP) leads to happiness among the people. 

In the draft report, the committee concluded that the mechanism developed for GDP estimation needs review and should reflect the ground reality.

The draft report recommended review and the total revamp of mechanism to calculate GDP and evolve indicators/parameters to gauge the environmental resource decay, and replenishment efforts made to compensate the loss and also to capture these aspects in measuring GDP and other economic parameters.

It has recommended incorporation of various socio-economic factors so that the GDP reflects reality and perception.