Arvind Subramanian, in an article published by The Indian Express, said his research found that the actual annual growth rate may have been about 4.5 per cent, below the official estimates of 7 per cent.
Faltering growth puts pressure on the government and the Reserve Bank of India to take measures to boost growth. It will be difficult for the Centre to announce any fiscal stimulus or increase its spending as it is already facing a tight fiscal situation.
In new GDP back series data, average growth during UPA regime is down from previous estimates while growth during NDA is pegged higher than during UPA. Why do findings differ from one report to another?
The release of the GDP back series comes three years after the switch to the new base year of 2011-12 and three months after the release of a report of the Committee on Real Sector Statistics, which was submitted to the NSC.
Recalibrating data of past years using 2011-12 as the base year instead of 2004-05, the Central Statistics Office (CSO) estimated that India's GDP grew by 8.5 per cent in the financial year 2010-11 (April 2010 to March 2011) and not at 10.3 per cent as previously estimated.