Lok Sabha Question No. 307 (STARRED), answered on 2019-01-02
Subject: Announcement of GDP
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: PREM SINGH CHANDUMAJRA

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA STARRED QUESTION NO. *307 TO BE ANSWERED ON WEDNESDAY, THE 2 ND  JANUARY, 2019

## ANNOUNCEMENT OF GDP

*307. PROF. PREM SINGH CHANDUMAJRA:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a)  whether  several  analysts  and  economists  of  the  country  have strongly  criticised  the  announcement  of  revised  Gross  Domestic Product  (GDP)  for  the  years  2004-2005  to  2010-2011  along  with  the announcement of GDP by his Ministry for second quarter of the current financial year;
- (b) if so, the reaction of the Government thereto;
- (c)  whether  the  released  Government  data  regarding  GDP  seems opposite to the ground level economy;
- (d) if so, the reaction of the Government thereto; and
- (e)  whether  this  type  of  controversial  development  related  data  can affect foreign capital investment and if so, the details thereof?

## ANSWER

MINISTER OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF CHEMICALS AND FERTILIZERS (SHRI D. V. SADANANDA GOWDA)

- (a) to (e) : A Statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question    No.  *307  for  2nd  January,  2019  by  PROF.  PREM  SINGH CHANDUMAJRA regarding Announcement of GDP:

- (a) and  (b):  Ministry  of  Statistics  &  Programme  Implementation (MoSPI) had revised the base year as 2011-12 in 2015 and has recently released the Back-Series estimates for the year 2004-05 to 2010-11 on 28.11.2018.  The  Ministry  has  also  released  the  National  Accounts Estimates  for  the  2nd  quarter  of  2018-19  on  30.11.2018.  There  have been several articles in newspaper on the GDP Back-Series. Government has clarified  that  releasing  Back-Series  as  per  changed methodology  of  current  base  year  is  a  requirement  for  making  the earlier series comparable  with the current series. Back  Series estimates  are  based  on  the  improved  methodology  of  2011-12  base, which are in line with UN System of National Accounts (SNA) 2008.

The Back-Series estimates have been released after consultation and approval of the methodology by the Advisory Committee on National Account  Statistics  (ACNAS),  which  is  an  expert  advisory  body  on methodology of compilation of National Accounts Statistics. Releasing Back-Series  data  is  a  general  practice  of  most  National  Statistics Offices (NSOs) and MoSPI has done it several times in the past.

(c) and (d): The question does not arise as  the Back-Series estimates have  used  the  latest  survey  results,  data  sources  and  methodology which  are  also  being  used  in  the  current  series.  The  trends  of indicators  like  Gross  Domestic  Product  (GDP),  Gross  Value  Added (GVA) etc. are largely similar in the revised series (Base 2011-12) as compared to series released with Base 2004-05. The computation of GDP  and  GVA  is  complex  exercise  requiring  the  economy  to  be recalibrated using the revised methodology and latest data sources/survey results and thus the growth rates differ. These series captures the structural changes in the economy.

(e):  Foreign  Direct  Investment  (FDI)  is  dependent  on  several  current macroeconomic factors including GDP/GVA. The Back -Series estimates  of  2004-05  to  2010-11  are  based  on  the  methodology  of current Base Year of 2011-12.

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