Economists sound warning over India data ahead of poll

Published
21
Indian Prime Minister Narendra Modi is vulnerable over his economic record in the polls starting on April 11. — AFP/File
Indian Prime Minister Narendra Modi is vulnerable over his economic record in the polls starting on April 11. — AFP/File

MUMBAI: A group of more than 100 experts sounded a pre-election alarm Friday over Indian economic data, accusing Prime Minister Narendra Modi’s government of tweaking or burying unwelcoming numbers.

Modi is vulnerable over his economic record in the polls starting on April 11, in particular a failure to meet promises to create enough jobs for the million Indians entering the labour market each month.

The warning comes after India’s central bank chief quit in December in a spat over alleged government interference. His successor, a Modi ally, oversaw a economy-boosting cut in interest rates last month in his first monetary policy meeting.

The 108 economists and social scientists said in an open letter that Indian statistics were “under a cloud for being influenced and indeed even controlled by political considerations”.

“(Any) statistics that cast an iota of doubt on the achievement of the government seem to get revised or suppressed on the basis of some questionable ideology,” they said.

The opposition Congress party of Rahul Gandhi, who has called Modi’s record on employment a “national disaster”, jumped on the letter.

“How much more can this govt. embarrass us on a global level?,” the party said on its official Twitter account.

Economists in fellow emerging Asian giant China and abroad have long suspected that data there is also massaged, often noting that full-year gross domestic product hits Beijing’s pre-set targets with suspicious regularity.

‘Highest in a decade!’

In 2015, the Indian Central Statistics Office (CSO) revised economic output numbers for past years, changing the base year and showing significantly faster — and questionable — growth rates.

The letter also questioned a revised growth rate of 8.2pc in 2016-17, “the highest in a decade!”, that “seems to be at variance with the evidence marshalled by many economists”.

That raised particular suspicion since it was when “demonetisation” — one of Modi’s biggest and most derided economic policies when 86pc of banknotes were withdrawn — hit businesses hard.

This was followed in 2017 by the tardy rollout of a nationwide new Goods and Services Tax (GST), which has been praised by experts but which has had considerable teething problems.

The letter also noted that a major and overdue survey on employment has still not been released. Two senior statistics officials have resigned in protest at the delay.

Published in Dawn, March 16th, 2019

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...
Terror and politics
Updated 29 Sep, 2026

Terror and politics

There is an urgent need to tone down the rhetoric and tackle terrorism as a collective challenge for both the affected provinces and the federation.
Watching the glaciers
29 Sep, 2026

Watching the glaciers

THE latest signs from Pakistan’s mountains are worrying. Suparco says the number of unfrozen glacial lakes it...
Dangerous agenda
29 Sep, 2026

Dangerous agenda

AS the world remains fixated on the US-Iran conflict, elsewhere in the Middle East, Israel is consolidating its grip...