GDP methodology allegations ‘completely baseless’, says N K Singh

New Delhi: Former Finance Commission chairman and Institute of Economic Growth president, N K Singh, on Thursday rejected allegations questioning the methodology used by the government to calculate India’s Gross Domestic Product (GDP), calling such claims “completely baseless”.

Responding to questions over former Finance Secretary Subhash Chandra Garg’s concerns regarding GDP calculations, Singh said changing the base year and updating the methodology is a normal exercise undertaken by countries to ensure that economic data reflects emerging trends and developments.

“As far as I know, the allegation being made against the government is completely baseless,” Singh said.

He explained that countries periodically change the base year for GDP calculations as new data becomes available and new forms of economic activity emerge.

“Such revisions are intended to capture changes in the structure and performance of the economy more accurately,” he said.

According to Singh, the latest changes made by the government should not be viewed as an attempt to manipulate economic data. Instead, he described the exercise as an effort to make GDP estimates more robust and comprehensive.