 "Montek questions 2012-13 GDP estimates")
"I am not certain that whether they (CSO) have done it in a correct way. In the past also, the quarterly (GDP) data was very frequently adjusted," Planning Commission Deputy Chairman Montek Singh Ahluwalia replied when asked about CSO's advance growth projections. According to the CSO advance estimates of GDP growth for 2012-13, economic growth is estimated at 5% as compared to 6.2% last year. The economy grew by the 5.4% in the first half of this financial year (April-September).
Elaborating further, Ahluwalia said: "I get the impression that they (CSO) have not actually addressed the question. Could it be that the (decline in the) economy bottomed out, in that case straight forward linear projection would not be right."
"I think it (growth projection of 5% in 2012-13) is very low. I have been told that CSO has taken data from April to November (2012-13) and they just projected it (advance estimates)," he added. Explaining further that the GDP growth for 2010-11 was recently revised from 8.4 to 9.3%, he hoped that it may happen to 2012-13 estimates also.
When asked whether 5% economic growth projection for 2012-13 is over-stated, he replied: "I don't think so. They underestimated 2010-11. When they raised that to 9.3%, then 2011-12 figure fell to 6.2%." "I don't think that they even have full data for November (2012). They have some production data and some credit data. I dont think that it is very reliable way of looking at the situation," he said.
About the rise in per capita income for 2012-13 to Rs 68,747 as compared to Rs 61,564 during 2011-12, he said, "The rise in per capita income is simply because earlier economic growth rates were higher (in 2010-11 and 2011-12). On tweaking the annual average growth rate target for 12th Plan in view of these advance estimates, he said, "It (the growth in 2012-13) will certainly be below 6%. I think nobody has doubt about. But I would not change the average annual growth rate target (of 8%) in 12th Plan."