Faulty data underestimated industrial output
India will on January 30 revise its Gross Domestic Product (GDP) growth rate for 2011-12 from 6.2 to about 7 per cent. Faulty data earlier underestimated industrial output by about 7 percentage points, sources in the Prime Minister’s Economic Advisory Council told The Hindu . “India has been overstating the slowdown in the economy, this correction will address that.”
The revision in the data assumes significance in the wake of the severe Opposition criticism of the Manmohan Singh government’s performance in economic management.
GDP data for a fiscal undergoes three rounds of revisions; the process takes three years. The Central Statistics Office is scheduled to release the Second Revised Estimate for 2011-12 on January 30. The First Revised Estimate was 6.2 per cent.
The Second Revised Estimate will use the Annual Survey of Industries (ASI) findings in place of the Quick Estimates of the Index of Industrial Production (IIP). The ASI data shows industrial output in 2011-12 grew by 23.6 per cent in nominal and about 15-16 per cent in real terms, the sources said.
The IIP data had “significantly” underestimated the real factory output growth for the year at 2.9 per cent.