Premium
This is an archive article published on December 7, 2018

Three years ago, key statistics panel revised UPA growth up, Niti Aayog rejected it

Then Chief Statistician T C A Anant confirmed that the release of data was withheld. “Niti Aayog had issues with a particular proxy we used for corporate sector growth estimates,” Anant told The Indian Express.

Three years ago, key statistics panel revised UPA growth up, Niti Aayog rejected it Chief Statistician T C A Anant confirmed that the release of data was withheld. (File Photo)

In what adds a fresh twist to the controversy over the downward revision of UPA growth data, it is now learnt that almost three years ago, the Central Statistics Office (CSO), in the Ministry of Statistics and Programme Implementation, had finalised back series data for GDP following a change in the base year from 2004-05 to 2011-12. That exercise had led to an upward revision in growth rates for the UPA years but the Niti Aayog, then under Vice Chairman Arvind Panagariya, did not allow its release.

While Panagariya could not be reached and did not respond to a text message and an e-mail, then Chief Statistician T C A Anant confirmed that the release of data was withheld.

“Niti Aayog had issues with a particular proxy we used for corporate sector growth estimates,” Anant told The Indian Express. There will always be some degree of variation in growth data, Anant said, adding that perhaps Niti Aayog should have looked at sectorwise data rather than aggregates (overall growth rates).

Story continues below this ad

Then Chairman of the National Statistical Commission (NSC) Pronab Sen who was present at the discussion where Niti Aayog rejected CSO’s analysis, said: “Niti Aayog took just one look at the growth rates which were going higher after 2004-05 and said, ‘We can’t allow it’. There was a question on the robustness of relationships, for example, between MCA (Ministry of Company Affairs) and RBI data. There are ways of getting around this.”

Explained
Questions on data integrity

The fact that there is another set of data on GDP figures that Niti Aayog didn’t allow to be released raises institutional questions. Rejecting CSO data is the prerogative of the government. But what is important is the credibility of the statistical system since it is key to designing policy based on evidence. In a poll year, expect more politics over this economics.

The back-series data released by Niti Aayog and the CSO on November 28 said the economy grew an average 6.7 per cent during the two UPA terms, lower than the 7.4 per cent average growth rate during the first four years of the current NDA government.

Express Explained: Simply Put: This back series, that back series

When contacted, present Chief Statistician of India, Pravin Srivastava, told The Indian Express: “Every (GDP estimation) exercise is an evolutional process. The methodology we used is consistent with SNA 2008. It is not growth rate that you rework; what you do is essentially recalibrate the data with contribution of different sectors.” SNA 2008, or the System of National Accounts 2008, is the latest version of international statistical standard for the national accounts adopted by the United Nations Statistical Commission.

Asked whether he had worked on the earlier back series data which the Niti Aayog rejected, Srivastava said: “It would not be fair to say that. Given the absence of data, there was a need to evolve on it.”

Story continues below this ad

Earlier in August, an NSC-appointed committee had stated that the economy grew at a faster pace under the UPA government from 2004-05 to 2013-14. The average GDP at market prices was 8.37 per cent during UPA-I (2004-05 to 2008-09), and 7.69 per cent during UPA-II (2009-10 to 2013-14), the Committee had said. This was criticised by the current Niti Aayog chief Rajiv Kumar as being “neither here nor there.”

P. Vaidyanathan Iyer is The Indian Express’s Managing Editor, and leads the newspaper’s reporting across the country. He writes on India’s political economy, and works closely with reporters exploring investigation in subjects where business and politics intersect. He was earlier the Resident Editor in Mumbai driving Maharashtra’s political and government coverage. He joined the newspaper in April 2008 as its National Business Editor in Delhi, reporting and leading the economy and policy coverage. He has won several accolades including the Ramnath Goenka Excellence in Journalism Award twice, the KC Kulish Award of Merit, and the Prem Bhatia Award for Political Reporting and Analysis. A member of the Pulitzer-winning International Consortium of Investigative Journalists (ICIJ), Vaidyanathan worked on several projects investigating offshore tax havens. He co-authored Panama Papers: The Untold India Story of the Trailblazing Offshore Investigation, published by Penguin.   ... Read More

Stay updated with the latest - Click here to follow us on Instagram

Latest Comment
Post Comment
Read Comments
Advertisement
Loading Taboola...
Advertisement