13 MAY,2019 | MEDC
India’s official data for both output and employment is being increasingly questioned at both the national and international levels. For investors also, the uncertainty of data leads to postponement of important decisions. Private investment has not recovered partly because there is still doubt about the future growth prospects of the Indian economy. These doubts are fuelled primarily by wobbly data, which, the opposition says, suits the government of the day. Data reports are leading to political divisions as never before and detracting from addressing the real issues of a slowing economy and rising unemployment. After the elections, regardless of which party comes to power, a key point on the agenda needs to be the restoration of the credibility of data pertaining to GDP and employment. Until we are able to convince the world that our macroeconomic data remains authentic and updated, the biggest loser is the nation, in terms of missed business opportunities. India’s official databases are generating more questions than answers, and that does not bode well for our economy’s long-term development prospects.
* Photo Credit: Google