New Delhi: Former Finance Commission chairman N.K. Singh has rejected allegations of manipulation in India’s GDP calculations, defending the government’s revised methodology and calling criticism of the process “completely baseless”.
Singh, who is also president of the Institute of Economic Growth, was responding to concerns raised by former Finance Secretary Subhash Chandra Garg over the methodology used to calculate India’s GDP growth.
“As far as I know, the allegation being made against the government is completely baseless,” Singh said.
Why GDP Methodology Changes
Singh said periodic revisions to the GDP base year and calculation methodology are standard practices followed by countries as economies evolve and new data becomes available.
“Such revisions are intended to capture changes in the structure and performance of the economy more accurately,” he said.
According to Singh, the revised GDP methodology should not be interpreted as an attempt to manipulate economic growth figures.
He argued that the new framework captures more data and covers a broader range of economic activities, making India’s GDP estimates more comprehensive and reflective of structural changes in the economy.
GDP Growth Meets Rating Upgrade
Singh also linked India’s latest 7.8% GDP growth figure with the country’s improved sovereign credit rating, describing recent developments as a “moment of celebration”.
He said India had regained an ‘A’ credit rating after 38 years. The country held an ‘A’ rating in 1988 before losing it in 1991, he added.
Singh described the combination of stronger GDP growth and the credit rating upgrade as a “happy congruence”, arguing that both developments highlighted the underlying strength and resilience of the Indian economy.
