According to people familiar with the situation, India is considering reducing its official annual gross domestic product estimates from six to four in order to prevent the many revisions that market analysts have previously characterized as confusing.
The people, who asked not to be named until a final decision was reached, stated that the Statistics Ministry will begin this as of the following year. In an effort to improve the quality of economic data, the proposal is now being examined by the ministries of statistics and finance as well as senior government officials.
According to the sources, India cut the time it took to finalise its national revenue projections from about three years to roughly two years. The action follows several disputes over India’s data, with market observers frequently criticizing the figures as insufficient or even perplexing due to abrupt and unexpected modifications.
In 2015, when the government changed the base year to account for economic changes, India’s GDP data has been controversial. The government’s revision of the 2016–17 GDP growth to an astonishing 8.2% in 2019—following an extraordinary cash ban that decimated the economy—baffled Indian analysts once more.
When trying to predict the future of the Indian economy, economists have looked for alternatives. The majority have turned to high-frequency indicators like auto sales and tax collection.