The GDP fiasco

Govt should withdraw the flawed back series of GDP data

India’s economy expanded at a disappointing pace of 7.1 per cent in the second quarter (July-September) in sharp contrast to 8.2 per cent growth in gross domestic product (GDP) in the first quarter of the current fiscal year. While it is true that the second quarter was challenging for the economy because of a sharp increase in crude oil prices, a higher import bill, and a weaker rupee, it is equally true that there was a favourable base effect since the economy struggled in Q2FY18 due to the effects of demonetisation and the disruption caused by the introduction of the