Revised GDP calculation: Ministry of statistics says it follows best international practices to compute macro data

New Delhi: The statistics ministry on Monday said it is following best international practices and standards while computing macroeconomic aggregates and indicators. The Ministry of Statistics and Programme Implementation (MoSPI) was responding to a media report alleging that the revised GDP series has made it impossible to compare the new growth data with the progress made during the UPA years. “The statistical processes involved in producing such estimates are open, transparent and in line with the best international practices and standards. “The processes and estimates are evolved after detailed deliberations in various technical committees and the recommendations placed in the public domain,” the ministry said in a release. However, the statement said recently certain sections of media have reported on the revision in base years of various statistical products and estimates brought out by the government. [caption id=“attachment_4317853” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The MoSPI has revised the base years of the GDP and the Index of Industrial Production (IIP) to 2011-12 and the Consumer Price Index (CPI) to 2012. For the IIP and CPI, the item baskets were revised to remove items that were no longer relevant and include those that had become relevant since the last base revision. “For the National Account estimates, the new series is a structural breakaway from the old series, as it includes information sources which have newly become available or are more regular than the earlier ones,” the statement pointed out. Noting that the 2011-12 GDP series incorporates data emanating from Ministry of Corporate Affairs (MCA) and this data source has been evolving over the years, the statement said,“for back casting the series till 2004-05, various alternatives are being worked out under the guidance of the Advisory Committee on National Accounts and the back series will be finalized and released after due consultations with this expert committee”. According to the statement, the IIP was also revised, and the weighting diagram and item basket now include new items that are relevant to the present context. A committee under former chief Statiscian of India T C A Anant is also examining various approaches with a view to reducing redundancy and avoiding duplication of efforts in estimation of employment through the establishment approach, the statement pointed out.