Is India exaggerating its economic growth?

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▼ India's economic growth might be overestimated, according to the country's former chief economic adviser.
In a column published in an Indian  newspaper, Arvind Subramanian said his research shows India has changed how it measures growth - and this led to its gross domestic product (GDP) being overstated by about 2.5% annually.
Prime Minister Narendra Modi's panel of economic advisers has rejected his conclusions, adding it would soon issue a "point-to-point rebuttal".
Mr Subramanian's observations have, however, reignited concerns about the credibility of India's economic growth data.
It was the fastest growing economy in 2018 but many leading economists have argued the new methodology is flawed as it does not truly reflect the economy.
What's the controversy?
In 2015, India changed the way it measured GDP.
One of the major changes: GDP is now measured by using market prices rather than basic costs. Simply put, the GDP was used to be calculated based on the wholesale prices at which producers received their products. Now, it's calculated based on the market prices paid by consumers.
And the base year was shifted from 2004-05 to 2011-12 to assess quarterly and annual growth figures. Since then, the methodology has been under scrutiny from economists and statisticians.
Mr Subramanian has reinforced those doubts by claiming that the economic growth for the period between the financial years 2011-12 and 2016-17 is exaggerated. While official estimates put it at 7%, he pegs the "actual growth" at about 4.5%.
His comments are based on his own research, which has been published by the Centre for International Development at Harvard University.
Since 2015 - when the new methodology came into effect - a growing number of experts have questioned the high growth estimates under Prime Minister Narendra Modi's government.
Despite the his government's claims of rapid growth, unemployment touched a 45-year high between 2017 and 2018.
Raghuram Rajan, former head of India's central bank and former chief economist of the International Monetary Fund, has expressed doubts over the data given the high rate of joblessness.
What does the Indian government say? (▪ ▪ ▪)

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Rushcourt71

Take a look at this article. India is Number 8 for 2018.

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