New Delhi: Recent analysis of economic data suggests that India’s reported economic growth figures may be overstated, raising concerns about the accuracy of official statistics.
According to Kashmir Media Service, Despite government reports suggesting a robust 7.8% growth in income from production over the past year, expenditure figures contrast sharply, indicating a mere 1.4% increase. A more comprehensive assessment using a blend of these metrics revises India’s growth rate downward to approximately 4.5%, substantially lower than official claims. This rate is consistent with the average growth since the onset of the COVID-19 pandemic, which marked a deviation from the temporary spike experienced in mid-2022.
The reliance of the Indian National Statistical Office on income data, rather than expenditure figures, has prompted skepticism among economists and statisticians. They caution that this method may obscure underlying issues such as growing inequalities and inadequate job creation within the economy. Particularly concerning is the economy’s heavy reliance on sectors like finance and real estate, which are less effective at generating employment compared to manufacturing and services.
Critics argue that by adjusting national account statistics, Indian authorities are painting an overly positive picture of the economic landscape, one that does not fully reflect the challenges of slowing growth and the increasingly difficult job market. This discrepancy has implications not only for domestic policy but also for international investors and multinational corporations who rely on accurate data for their strategic planning and investment decisions.