Gross domestic product data is reliable in measuring the health of the Indian economy. Do you agree with this view? Comment (200 Words)
Refer - Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The NSO released the current GDP series in 2015, using 2011-12 as its base year. Since then, the new series has been embroiled in controversy. Some have argued that the problem in the new series is the real growth rate.
· the growth rate of real GDP is contaminated by the “double deflation problem”. The new series entailed a shift from a volume-based measurement system to one based on nominal values, thereby making the deflator problem more critical.
· But the NSO doesn’t deflate away the increase in profits. Instead, it records a purely nominal increase as a real increase in GDP, thereby overstating growth. Simulations have shown that this effect can be substantial.
· But before we jump to conclusions, we need to take into account the third measurement problem — this works in the opposite direction.
· In the meantime, it simply assumes that the sector has been growing at the same rate as the organised sector. This practice was working well when the two sectors were moving in tandem.
· They continue to assume that unorganised sector enterprises have been growing as fast as those in the organised sector. In that case, there would be an upward bias to the reported GDP growth.
Samy uvaraj 3 years
Review please
IAS Parliament 3 years
Try to explain the flowchart briefly and bring coherence in theanswer. Keep Writing.
K. V. A 3 years
Kindly review
IAS Parliament 3 years
Good attempt. Keep Writing.
