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India changed its data sources, methodology which led to significant overestimation of growth: Modi’s former economic advisor

The former Chief Economic Advisor of the Narendra Modi Govt Arvind Subramanian has said that India’s economic growth rate has been overestimated by around 2.5 percentage points between 2011-12 and 2016-17 due to a change in methodology for calculating GDP.

India’s gross domestic product product (GDP) growth rate between this period should be about 4.5 per cent instead of the official estimate of close to 7 per cent, he said in a research paper published at Harvard University.

“India changed its data sources and methodology for estimating real gross domestic product (GDP) for the period since 2011-12. This paper shows that this change has led to a significant overestimation of growth,” he said in the paper.

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