SBI Research Dismisses Skepticism Over GDP Figures, Calls Criticism ‘Intellectually Dishonest’
New Delhi: Researchers at the State Bank of India (SBI) have launched a robust defense of the nation’s latest economic data, aiming to silence critics who have raised doubts regarding the recent 7.8% GDP growth print. In its latest Ecowrap report, the country’s largest lender questioned why certain segments of society find it difficult to accept the resilience of the Indian economy.
Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI and a member of the 16th Finance Commission, addressed the controversy during an interview with NDTV. He specifically hit back at skepticism voiced by prominent figures, including former Reserve Bank of India (RBI) Governor Raghuram Rajan, former Finance Secretary Subhash Chandra Garg, and various opposition leaders.
Ghosh asserted that the debate was fueled by an “unnecessary controversy” rooted in a fundamental misinterpretation of economic data.
The Math Behind the Growth
The crux of the misunderstanding, according to Ghosh, lies in the shifting of the base year for GDP calculations. When the National Statistical Office (NSO) released the GDP figures for the April-June quarter last year, the calculations were based on the 2011-12 price series, resulting in a nominal GDP of ₹86.1 lakh crore.
However, the latest release on August 31 adopted a refreshed base year of 2022-23. Consequently, the comparative figure for the same period was revised downward to ₹80.4 lakh crore. The current GDP for the April-June quarter stands at ₹88.3 lakh crore.
Ghosh pointed out that some critics are erroneously calculating a 2.6% growth rate by comparing the current ₹88.3 lakh crore figure against the “old series” figure of ₹86.1 lakh crore.
“This is completely unsolicited and a sure sign of intellectual dishonesty,” Ghosh remarked, emphasizing that a valid comparison must pit the new ₹88.3 lakh crore against the revised ₹80.4 lakh crore baseline.
Legitimate Revisions
The SBI report underscored that data revisions are standard global practice. These adjustments are essential to incorporate more recent economic variables and provide a more accurate snapshot of the economy. Ghosh reminded critics that revisions occur in both directions—upward and downward—based on the availability of updated data.
“It is always fair to look into the data more rigorously and more meticulously instead of just saying this number is not correct or this should have been the number,” Ghosh added.
The SBI report concluded by reaffirming the legitimacy of the process, highlighting that transparent and periodic revisions are “part and parcel” of maintaining accurate national accounts. By advocating for a more objective analysis, the researchers hope to shift the focus from politically charged skepticism to a deeper understanding of the evolving economic framework.
