Advance estimates may miss the impact of demonetisation

Economic Survey likely to have a better take on Indian economy

The gross domestic product (GDP) estimates in the Economic Survey, to be presented on January 31, may be able to encapsulate the effects of demonetisation better than the advance estimates, which will be released by the Central Statistics Office (CSO) on Friday.

This is because the CSO’s advance gross domestic product estimates, on which the finance ministry will base its Budget numbers, will likely be based on the data till October, before the announcement of demonetisation. Hence, they might paint a better picture of the economy than is the case.

Chief Economic Adviser Arvind Subramanian is expected do his own