Govt to clarify on trade data comparison

Following criticism from some quarters regarding its method of comparing trade data, the commerce and industry ministry is in the process of finalising a white paper on the issue. Expected to be ready in the next few weeks, the paper will be put on the web for public comments.

"I am aware there has been some controversy regarding the comparison of data. We are preparing a white paper internally and will seek public comments on it," SN Menon, commerce secretary, said at the launch of the electronic funds transfer facility for exporters by the Union Bank of India.

Menon said, prior to 2000 the commerce ministry used to compare provisional data of the previous year with that of the current year. This was later changed to comparing final figures of the previous year with provisional figures of the current year.

However, since April this year, the ministry had reverted to comparing provisional figures of the previous year with those of the current year.

On the reasons for the change, Menon said, "The comparison should be of the same base. We think it is the right thing to do."

Comparison of provisional figures with provisional data had resulted in higher export growth. In the first quarter of the current fiscal, a provisional-to-provisional comparison resulted in export growth of 32 per cent, while a comparison of final figures of the previous year with provisional figures of the current year showed growth of only around 18 per cent during April-June.