Government defends GDP data, says, 'nominal GDP is a new bogey being spread to indicate that economic activity is weak'
Amid the rising calls of criticism to the recently released GDP data, the Finance Ministry, in its latest X post, defended the real GDP growth estimate and the deflator used to calculate it. Commenting on the the debate over accuracty of real GDP over nominal GDP, Finance Ministry said that the nominal GDP data numbers have become a "new bogey being spread to indicate that economic activity is quite weak'.
“India’s real GDP growth was 7.8% y/y (year on year) in Q1 FY24 (first Quarter of FY 2023-24). This is as per the Income or Production Approach.
As per the expenditure approach, it would have been lower. So, a balancing figure – statistical discrepancy – is added to the expenditure approach estimate.
These discrepancies are both positive and negative. Over time, they wash out," said the Ministry of Finance in its X post on Friday.
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