【New Delhi】"Taking output as a principal indicator of activity is incorrect. The method of collecting data is correct and people have to change the way they view the numbers," says TCA Anant, chief statician of India and Secratory of both National Statistical Commission and Ministry of Statistics and Programme Implementation, in a categorical response to those who have raised doubts about the way GDP is calculated.
Because people are thinking about output as being the principal indicator of activity. Output is only a partial indicator of activity - value added is a separate exercise.
Secondly, there is a tendency to think about constant price measurement as somehow being more reflective of reality than current price measurement. That is in general true if you have a system of low generalized inflation or even high generalized inflation. When a significant chunk of the commodity basket prices are negative, you can have a situation where current price growth is lower than constant price growth.
I don't think we have had a situation akin to this in a long time where we have had sustained negative WPI inflation for nine months. A sustained negative WPI inflation is not healthy. You need to address this problem. In part, the problem is driven, in the case of manufacturing, from a lack of demand for manufactured good. That needs to be pushed and that is exactly what the chief economic adviser has also been saying.
○Sentiment ebbs in manufacturing: Ficci/PwC survey
【New Delhi】Sentiment among manufacturing sector business leaders has ebbed from last year though the latest gross domestic product (GDP) estimates showed that the manufacturing sector grew at 12.6 per cent in the third quarter of the financial year.
A Ficci/PwC survey said 36 per cent of the respondents expected margins to increase over 12 months, down from 47 per cent the year before.
Only 58 per cent of the respondents were somewhat optimistic of the prospects of the Indian economy in the coming year compared with 68 per cent in last year’s survey.
Sustained negative WPI not healthy: Chief Statistician TCA Anant
Sentiment ebbs in manufacturing
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