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[–]gsa123[S] 8 points9 points10 points  (8 children)
I'm pretty sure Raghuram Rajan had made a statement last year about being careful about drawing conclusions on growth based on our GDP calculations.
[–]Randiathrowaway17 2 points3 points4 points  (7 children)
Rajan highlighted the GDP deflators. India switched to the SNA 2008 system which the UN developed(UNESCO certified?) back in early 2015.
This looks good on paper, but the devil is in the details. The SNA system is just a framework. It still leaves a lot of room for how you want to implement it, including the GDP deflators.
The problem in India is that service GDP growth is deflated with WPI, which makes no sense since WPI is more heavily weighted towards industrial prices. This gives it an artifically low deflator, which boost real GDP.
A second problem is that India does not use so-called 'double deflation' in deflating manufacturing(because manufacturing these days is not just factory work, a lot of auxiliary services is also included). This means, in simple English, that you should use both WPI and CPI inflation to deflate the nominal growth in manufacturing. Yet India does not do this.
There are other deep issues with the way the GDP figures in India is calculated, but this is what Rajan was flagging. He wasn't the only one, either.
[–]bhiliyam 0 points1 point2 points  (6 children)
Rajan highlighted the GDP deflators
Why do you keep reposting that despite being pointed out that this is false? Why continue lying?
Of course, I am not a "reasonable" man, so I might never understand the need for such intellectual dishonesty.
[–]Keerikkadan91 11 points12 points13 points  (5 children)
Why continue lying?
I might never understand the need for such intellectual dishonesty.
[–]charavaka 15 points16 points17 points  (1 child)
Selective amnesia strikes bhiliyam again.
[–]gsa123[S] 9 points10 points11 points  (0 children)
this is hilarious.
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