Misleading GDP data: PM Modi's narrative of 7% growth has done real damage

India's level of economic output may be overstated by anywhere between 9 per cent and 21 per cent

GDP growth in Q3 slows to 6-quarter low of 6.6%

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Andy Mukherjee | Bloomberg
For four years, India has battled the suspicion that its new and improved GDP series is a rose-tinted view of reality. Now that Narendra Modi is prime minister for a second term, he must see that battle for what it is: a lost cause.

Unlike harmless advertising puffery around a toothpaste that kills 99.9 per cent of germs, the narrative of 7 per cent growth has done real damage.This week, a top former government adviser provided a statistical estimate. The actual GDP growth rate between 2012 and 2017, according to Arvind Subramanian’s working paper for Harvard University, may have been 2.5 percentage points lower than the official 7% rate.

India’s level of economic output may be overstated by anywhere between

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First Published: Jun 14 2019 | 12:44 PM IST

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