oppn parties Economic Data Should Not Be Window Dressed

News Snippets

  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
  • IPL: Lucknow Super Giants to meet Royal Challengers Bangalore in the first Eliminator today. Winners to take on Rajasthan Royals for a place in the finals
  • IPL: Sensational David Miller blasts three sixes off the first three deliveries of the last over to help Gujarat Titans beat Rajasthan Royals by 7 wickets and enter their maiden IPL final in their debut year
  • While joining US-led IPEF, PM Modi says it will bring "peace and prosperity in the Indo-Pacific region"
  • Mamata Banerjee says Bengal government will not lower VAT as the excise cut by the Centre will already reduce state's revenue by Rs 641 cr
  • Mamata Banerjee says Central agencies must be made autonomous to save democracy
  • While commuting the death sentence of 2 men and 1 woman, the Supreme Court says convict's conduct before and after crime is vital for death penalty
  • Health minister Mansukh Mandaviya slams the Covid death report of WHO at the 75th session of World Health Assembly in Geneva
US President Joe Biden says India-US ties to be among "closest on earth" //////// China and Russia send bombers near Japan even as Quad leaders were holding meetings there /////// Gujarat Titans enter IPL finals in style, beat Rajasthan Royals by 7 wickets
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Economic Data Should Not Be Window Dressed

By Sunil Garodia
First publised on 2018-12-01 08:57:22

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
It needs to be recognized that modern economy – in fact, even society – is increasingly being driven by data. Hence, it is imperative that data collection, analysis and presentation are robust, timely and credible. Since the Indian economy is in the top six in the world and growing at a good rate, both domestic and international investors look to invest here and their decisions are largely based on sectoral data and related policy decisions of the government. The government also takes policy decisions based on economic data.

Hence, frequent tinkering with back data confuses economists and investors and is not good for generating inflow of funds in the economy or for formulating policy. The NDA government has shifted the base year for calculations from 2004-05 to 2011-12. While there is nothing intrinsically wrong in this as it brings data closer to current prices given that inflation skews the figures over time, the effects have triggered a political row. The new set of back data show that the growth rate during the first four years of UPA I & II was 6.7%, much lower than the earlier figure of 8.1% (with 2004-05 as base) and lower than the 7.4% achieved under NDA in the last four years (with 2011-12 as base).

Periodic updating of the base year is necessary and is done in all economies across the globe. It is not as if the UPA growth rate has been rubbished by the new set of data. Those who understand economics, statistics and data will always talk about growth rates as per the base year from which they are calculated. Hence, there is no need for political squabbling. But it also needs to be stressed that frequent tinkering with data, window dressing figures and presenting them in slanted way is not proper and should be avoided at all costs.