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GDP growth estimates to be revised if inaccuracies found- FM

Last updated: 03 September 2010


GDP growth estimates to be revised if inaccuracies found: FM

 

Union Finance Minister Pranab Mukherjee on Wednesday said the estimates of 8.8 per cent GDP growth released on Tuesday could be revised if inaccuracies are found in computation.

"Criticism has been made about the projection from the demand side, that it is not matching with the growth that has been projected, and that will have to be addressed," Mukherjee told reporters in Mumbai.

The CSO (Central Statistical Organisation) sometimes corrects the figures as they are based on random surveys, he said.

"Therefore, if there are some errors here and there, the revised figure will be given," the Finance Minister told reporters after meeting with the Commissioners of Income Tax, Customs and Excise in Mumbai.

In data released on Tuesday, the Indian economy was found to have grown by 8.8 per cent in the June quarter the fastest quarterly growth in three years on the back of robust growth in manufacturing.

However, the growth at market price, which reflects the value of the production or services after taking into account indirect taxes, worked out to be just 3.65 per cent.

On the growth prospects for the Indian economy this fiscal, Mukherjee said, "I am a bit conservative, but I will be too happy if the growth becomes 8.75 to 9 per cent... But I am trying to confine my observations between 8.5 to 8.75 per cent."

The economy grew by 7.4 per cent during 2009-10.

Following the global economic meltdown, the growth rate slipped to 6.7 per cent in 2008-09 from over 9 per cent during the three preceding years.

Despite the monsoon being good so far this year, the Finance Minister said that certain uncertainties do exist, considering the size and magnitude of the Indian economy.

The impact of rain deficiency in parts of Bihar, Jharkhand and West Bengal will have to be looked at and "we will have to wait for the ongoing kharif season to get over (to arrive at a final GDP figure)," he said.

 

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