The recent debate about accuracy of India’s GDP estimation following the revised estimation methodology in 2011 is extremely significant.
Models that incorrectly over-estimate GDP growth by 2.7 % for India post-2011 also misestimate GDP growth over the same period for 51 out of 95 countries in the sample.
Several advanced economies such as UK, Germany and Singapore have their GDPs mis-estimated with incompletely specified econometric model.
Concerns of a mis-estimated Indian GDP are unsubstantiated by the data and are thus unfounded.
