InvestorQ : I am a little confused about GDP growth number. Now there are again doubts raised about the GDP numbers. Is GDP really growing and why this controversy?
Ria Roy made post

I am a little confused about GDP growth number. Now there are again doubts raised about the GDP numbers. Is GDP really growing and why this controversy?

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Mahil Khan answered.
2 years ago
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The GDP growth is put out by the government on a quarterly basis. In the last round, the government had restated all the past GDP figures to show that the economy had actually grown at a slower rate during the UPA period and that the current growth is much faster. However, the government has refused to make the latest unemployment data public after CMIE had suggested that unemployment had touched a peak of 7.5%. The latest controversy about data is about a statement made by the NSSO (National Sample Survey Organization).

The NSSO had alleged that the latest GDP data had used the MCA data filed by companies to get a better picture of the GDP growth. However, NSSO has also pointed out that nearly 35% of the companies that were included in this calculation did not exist or were benami companies. While use of MCA data for GDP calculation is a move in the right direction, the adding of benami companies to the list is still open to debate. Former statistical advisor, Pronab Sen has justified this practice since it reflects GDP anyways. That is where it stands.

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