Hyderabad: Chief economic adviser Krishnamurthy Subramanian refuted suggestions that the official economic indicators were fudged and said even the slightest mistrust can affect foreign investment.
Speaking at the Deccan Dialogue, Mr Subramanian said, “It’s important to dispel the misplaced perception that GDP growth rate projections are not estimated correctly… If there is mistrust about the growth rate, it affects foreign investment. It is important, therefore, to understand that volatility is not the same as bias.”
Mr Subramanian, in what could only be a sly dig at China, said it was challenging to create a narrative that is different from the truth due to democratic nature of the country.
Earlier in the day, Amartya Lahiri, professor of economics at University of British Columbia, questioned the relaibility of official data and also estimates by private agencies. “All forecasts on the economy from private agencies try to match what the official statistical agency puts out,” Mr Lahiri said....