Economic Adviser Sanjeev Sanyal Refutes Claims of GDP Data Manipulation by the Centre

In a recent interview with India Today, Sanjeev Sanyal, the economic adviser to Prime Minister Narendra Modi, strongly countered allegations suggesting that the Central government is manipulating GDP data. The assertions emerged amidst heightened scrutiny from the Opposition regarding the government’s revised methodology for calculating India’s Gross Domestic Product (GDP).

Sanyal emphasized the credibility of the data released by the Ministry of Statistics and Programme Implementation, which indicated that India’s economy grew by 7.8% year-on-year for the April-June quarter, surpassing the Reserve Bank of India’s prediction of 7%. He stated, “No serious economist is dismissing this data as unreliable,” highlighting confidence in the figures presented.

The discussion centered around the government’s decision to update the GDP base year from 2011-12 to 2022-23 in February 2023. Sanyal explained that the previous methodology was flawed and required an update to better reflect the current economic landscape. He mentioned that the base year is typically revised every decade but could not be adjusted at the start of this decade due to the unprecedented economic conditions created by the Covid-19 pandemic. According to Sanyal, waiting until 2024 is essential to establish a reliable base year that accurately represents typical economic activity.

Furthermore, Sanyal pointed out that the robust GDP growth is corroborated by other economic indicators, such as rising corporate profits and increasing car sales. This multidimensional economic assessment, he argues, reflects a more comprehensive picture of India’s economic performance.

The Congress party, which has been vocal in its accusations against the government regarding data credibility, responded to the economic adviser’s statements, intensifying the ongoing political discourse surrounding economic performance and data integrity in India. As the debate continues, the government’s economic figures will likely remain under scrutiny as policymakers and analysts aim to navigate the complex landscape of India’s post-pandemic recovery.

Source: scroll.in