India avoids 'questionable' methods used by other nations to measure growth: CEA V Anantha Nageswaran

New Delhi: India does not use the "questionable methodologies" adopted by some advanced economies to estimate growth, chief economic advisor (CEA) V Anantha Nageswaran said on Tuesday, adding that doubts over India's gross domestic product (GDP) framework tend to surface only when growth outperforms expectations.

Speaking amid scrutiny of India's stronger-than-expected 8.2% GDP growth in the second quarter of this financial year, he said, "We are engaged in an exercise of estimation, and all estimation methodologies have limitations. But we seem to be particularly fond of questioning our own methods, and much less so those followed elsewhere."

Nageswaran cited techniques such as the chain price index - which frequently updates price weights - as examples of methods used by some developed countries that India has consciously avoided. "Many other methodologies which developed countries follow are questionable... we are not following them," he said.


He was speaking at a pre-release consultative workshop on the revision of base years for the Consumer Price Index (CPI), GDP and the Index of Industrial Production (IIP).

The Ministry of Statistics and Programme Implementation (MoSPI) is scheduled to release a new GDP series with 2022-23 as the base year on February 27, 2026, replacing the current 2011-12 base. The CPI base will shift to 2024 from 2012, while the IIP base will move to 2022-23 from 2011-12.

"All statistical data are ultimately estimates. As long as they are consistent, transparent, reveal the true picture of the underlying economy and pass the smell test, we need to be a lot more mature in how we evaluate and write about them," Nageswaran said, adding, "If people are still willing to criticise, we can't do much about it - that is part of their DNA."

His statement assumes importance in the wake of the International Monetary Fund flagging concerns over the quality of Indian data.

MoSPI secretary Saurabh Garg said back-series GDP data will be released for 2022-23, 2023-24 and 2024-25, with earlier years to follow later. He said it was too early to assess the impact of the base revision on growth numbers, though "in general, we don't expect much change from our previous expectations".

The ministry is also working on developing satellite accounts in line with the upcoming revision of the System of National Accounts 2025, which is expected to be adopted globally from 2029. Garg said MoSPI is collaborating with states to build satellite accounts for areas such as culture, the digital economy and tourism.

"It's important that we collect and disseminate data that is robust, accurate and credible," Garg said. "That is what we have attempted through the base revision exercise."