PM's Economic Advisory Council publishes point-to-point rebuttal "debunking in entirety" former CEA Dr Arvind Subramanian's claims of GDP overestimation. Read Here

Countering former Chief Ecomic visor Dr. Arvind Subramanian's paper claiming India's GDP is overestimated by 2.5%, with a 'point-to-point' rebuttal, Ecomic visory Council, on Wednesday, has published its own paper titled ' GDP estimation in India- Perspectives and Facts ' in which it states that Subramanian's paper lacks rigor in terms of specific data sources and description.

In paper it states that choice of countries used by Subramanian will t stand he scrutiny of acemic or policy research standards and commenting that as Subramanian occupied a  high seat of Indian ecomic planning, data sources will t be discussed in paper.

" author mentions that motivation of his paper is t political and is focused on technical aspects. However, given fact that his paper lacks rigor in terms of specific data sources and description; alternative hyposis; rationale of equation specifications, use of dummies, and robustness-check diagstics of estimated equations; and choice of countries in sample and a specific list; it would t stand scrutiny of acemic or policy research standards."

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paper also state that Subramanian's paper while t peer-reviewed should be taken for consideration while pinpointing several factors in his paper such as Cherry-picking high-frequency indicators, Right data, wrong conclusions, Alternate explanations to a mismatch between high-frequency indicators and GDP growth, An unusual ecometric exercise with unworthy results, Institutional bias against CSO,Misplaced hyposis, methodology and analysis of India.

It also concludes that while GDP estimation is t a perfect science as stated by Subramanian too, and his attempt to  suggest that growth numbers are over-estimated confirms that estimation process is robust to spurious criticism ding that India’s GDP methodology is consistent with internationally accepted standards. It also ds that to approximate GDP of such a country on basis of some correlations and four variables using simplistic ecometric techniques is demoralizing and technically inappropriate.

Here is link to entire paper: http://eacpm.gov.in/wp-content/uplos/2019/06/EAC-Paper_GDP-estimation_19-June-2019.pdf

Centre Responds To Former CEA Arvind Subramanian's Claims Of Overestimation In GDP, Says 'will Come Out With A Point-to-point Rebuttal'

Previously on June 11, former Chief Ecomic viser h deduced that India’s ecomic growth rate has been overestimated by around 2.5 percent points between 2011-12 and 2016-17 due to a change in methodology for calculating GDP. He h furr said that while official estimates pegged aver annual growth during this period at about 7%, actual growth may have been 4.5%.

His paper titled "India's GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms, and Implications" was published on Tuesday which mainly spoke about new GDP series, its controversies and policy implications of having false data.

Centre h anunced immediately afterwards that it would examine estimates me in paper and come out with a point-to-point rebuttal in due course.