A Test Of Smell-test Variables USED To Debunk GDP Data
In 2015, India revised its approach to computing its gross local product (GDP) by adopting 2011-12 as the new foundation year, of the used 2004-05 instead. Since that time, India’s GDP numbers have been under the scanner. Though both the series have a high correlation, growth rates under the new series are a share point or so lower than the old GDP series, reflecting wider coverage of smaller firms in the new series perhaps. This has upset leaders of the United Progressive Alliance (UPA), as growth under the new series is apparently stronger under the National Democratic Alliance (NDA) government. However, this political stance is logical hardly. If the new series has a downward bias in GDP growth, it offers probably pulled down growth rates under the National Democratic Alliance (NDA) regime as well compared to the older series.
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