NEW DELHI: The ministry of statistics and programme implementation (MOSPI) on Wednesday categorically said that there used to be no affect of the discovering of the National Sample Survey Office (NSSO) document on the GDP numbers as it fixed a powerful defence of the rustic's information ecosystem.
A newspaper document on Wednesday had said MCA-21 database used for calculating the new GDP sequence used to be discovered to be stuffed with holes, elevating doubts about GDP information. It added a study via the NSSO had discovered just about 36% of the companies -part of MCA-21 database - "could not be traced or were wrongly classified." It triggered a debate on social media concerning the high quality of India's information and the method involved.
Untitled Carousel
"It is emphasised that there is no impact on the existing GDP/GVA (gross value added) estimates for the corporate sector as due care is taken to appropriately adjust the corporate filings at the aggregate level based on the paid up capital," the ministry said in a statement.
"The recent exercise of the National Sample Survey Office to bring out a technical report on the services sector was commissioned by the ministry to understand the data gaps and take remedial steps while undertaking the new base revision exercise for the proposed 2017-18 series. The results of this report will be further examined by the advisory committee before finalising the approach and methodology for the proposed 2017-18 series," it added.
Experts also said the scoop document had drawn simplistic assumptions and slammed attempts to undermine the method of data estimation.
"What this means is there are a large number of shell companies. The report shows the number of shell companies is particularly large in the services sector. But whether that leads to an overestimation of GDP is the question?" Pronab Sen, former chief statistician of India, said.
"The answer is it does not. Shell companies do not create value on their own but they show value created by the mother company. The value which has been created is shown in the books of the shell company. If you don't capture that, then you would be underestimating the GDP," he said.
The ministry also said the 2011-12 sequence of national accounts statistics incorporated changes in information assets, growth in protection of activities and enhancements in procedures which are aligned to the latest recommendations of UN System of National Accounts 2008, to the extent information is to be had.
It said there has been an improved protection of the monetary firms, local our bodies and self sufficient establishments, all of which have an affect on the estimates of gross value added. The 2011-12 national accounts sequence also started the usage of the company sector information to be had from the ministry of company affairs in its estimates.
A newspaper document on Wednesday had said MCA-21 database used for calculating the new GDP sequence used to be discovered to be stuffed with holes, elevating doubts about GDP information. It added a study via the NSSO had discovered just about 36% of the companies -part of MCA-21 database - "could not be traced or were wrongly classified." It triggered a debate on social media concerning the high quality of India's information and the method involved.
"It is emphasised that there is no impact on the existing GDP/GVA (gross value added) estimates for the corporate sector as due care is taken to appropriately adjust the corporate filings at the aggregate level based on the paid up capital," the ministry said in a statement.
"The recent exercise of the National Sample Survey Office to bring out a technical report on the services sector was commissioned by the ministry to understand the data gaps and take remedial steps while undertaking the new base revision exercise for the proposed 2017-18 series. The results of this report will be further examined by the advisory committee before finalising the approach and methodology for the proposed 2017-18 series," it added.
Experts also said the scoop document had drawn simplistic assumptions and slammed attempts to undermine the method of data estimation.
"What this means is there are a large number of shell companies. The report shows the number of shell companies is particularly large in the services sector. But whether that leads to an overestimation of GDP is the question?" Pronab Sen, former chief statistician of India, said.
"The answer is it does not. Shell companies do not create value on their own but they show value created by the mother company. The value which has been created is shown in the books of the shell company. If you don't capture that, then you would be underestimating the GDP," he said.
The ministry also said the 2011-12 sequence of national accounts statistics incorporated changes in information assets, growth in protection of activities and enhancements in procedures which are aligned to the latest recommendations of UN System of National Accounts 2008, to the extent information is to be had.
It said there has been an improved protection of the monetary firms, local our bodies and self sufficient establishments, all of which have an affect on the estimates of gross value added. The 2011-12 national accounts sequence also started the usage of the company sector information to be had from the ministry of company affairs in its estimates.
No impact of NSSO survey on GDP numbers: Govt
![No impact of NSSO survey on GDP numbers: Govt]()
Reviewed by Kailash
on
May 09, 2019
Rating:
