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  • 1 week ago
A political showdown has erupted over the latest gross domestic product figures, with the government strongly defending the economic growth data against allegations of manipulation. Critics, including opposition leaders and a former finance secretary, questioned the revision of previous year economic calculations, claiming the effective growth rate was significantly lower. The government dismissed these arguments, stating that the comparisons incorrectly mixed different data series and ignored the updated base year calculations. Officials from the statistics ministry reiterated that granular data was compiled with due diligence and transparent methodology. Alongside the GDP numbers, economic indicators highlighted strong foreign exchange swap participation and substantial inflows from overseas Indian bank deposits, reflecting continued investor confidence in the broader economic trajectory.

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00:00We are breaking news right at the top. This is with regards to the debate over the GDP growth numbers
00:06that have come in now.
00:08It is Piyush Goyal who's hit back at the opposition, who's come out to raise questions about the very projected
00:14numbers.
00:15In fact, coming out to allege that they have fudged numbers.
00:18The government defends India's GDP growth figures and Union Minister Piyush Goyal hits back at the GDP critic saying,
00:25do not compare apples and oranges.
00:29Piyush Goyal has hit back at the opposition, former finance secretary, over the remarks on the quarter one GDP growth.
00:34He has to say that the government rejected the argument that the first quarter economic growth was closer to 2
00:40.6%.
00:41Calling the comparison an apples and oranges exercise.
00:45Those two comparisons do not stand.
00:48This is what Piyush Goyal has to say at this given point of time with regards to all of the
00:53questions
00:54that have been raised about the latest GDP growth numbers of 7.8% that's come in.
01:00Listen in to what the Union Minister had to say first.
01:08In this global world of Des Moines, India is that one oasis in the desert.
01:16India is that one country which has continued to stay the course.
01:23We've continued to be the fastest growing amongst the large economies of the world.
01:30The naysayers can say what they want.
01:33But 7.8% growth is a reality.
01:38When I see on television some of the opposition leaders,
01:42even possibly you can throw in along with them a former finance secretary or a former reserve bank governor,
01:52both of whom could not complete their time in India or in the government,
01:59they don't even know how to compare apples with apples.
02:02They are trying to misguide the people of India comparing a growth rate and an old series with a new
02:12series
02:13where the base year itself has changed.
02:18Piyush Mishra joining us on the broadcast with more details on this now.
02:23Piyush, a very good morning to you.
02:24This is what the Union Minister has to say in response to the comparisons that have been brought in.
02:29The BJP has maintained, A, not only have they rejected all of the comparisons and analysis
02:36that's been done so far by the former finance secretary,
02:40but also come out to say that we're comparing two very different data sets altogether.
02:47Apples and oranges, that is the reference point that's been pulled in by Piyush Goyal.
02:54Well, that's right, Shreya. Good morning to you and to all our viewers.
02:57I'd like to rightly mention that, yes, the government is rejecting the kind of claims
03:01those are being made by a holistic political party.
03:03You would remember that since the GDP figures were out,
03:06we have seen various opposition leaders, especially leaders from the Congress party,
03:12coming out in open and saying that these are distorted numbers.
03:15There is no truth in the kind of claims which the government is making.
03:20After which, you also heard what the former finance secretary had to say.
03:25Following which the government has come out in the open,
03:27we yesterday spoke to the secretary of the Ministry of Statistics and Programme Implementation.
03:32He told us that the methodology which was used in calculating GDP,
03:38you know, it was done with due diligence.
03:41The granular data was collected and after that, the GDP has been collected.
03:46He has also said that people should not be hesitant in accepting the India's growth story.
03:52So, yes, Shreya, a lot of politics is taking place.
03:55We are also hearing what Piyush Goyal is saying,
03:57that people are not happy with the kind of growth India has had.
04:02And they should understand that, you know, we are now moving towards Viksit Walat.
04:06And these are real GDP numbers that's what various union ministers are also coming to be for.
04:12Now, we'll have to wait and watch how the opposition is further going to escalate this entire matter.
04:17Why? Because they are quoting what the former finance secretary has said.
04:20But after these GDP numbers have come out,
04:23we are now seeing a lot of political controversy taking place.
04:26We'll have to wait and watch how it is further going to escalate.
04:29Right, Piyush, definitely politics viewers seem to be snowballing over this very matter.
04:35But let us understand one thing.
04:37Not everybody is coming out to oppose the very GDP numbers.
04:41There are NRIs, non-residing Indians, who have come out to hail India's growth story.
04:46We'll take you through why and what is it that they have given their stamp of confidence to.
04:52Number one would be the massive response to the RBI Forex swap scheme.
04:58This is the scheme under which we see the entire exchange of Indian rupees to the U.S. dollars takes
05:05place.
05:05That entire system that exists for that.
05:08$137 billion received and premature closure for that very scheme has been highlighted.
05:15The NRI bank deposit inflows is somewhere at around $127 billion.
05:21The NRI bank deposits 50% more than the expected amount that had been cited.
05:29And moreover, overseas Indians invest wholeheartedly in this very scheme.
05:35So yet another economic indicator after the 7.8% GDP figure is this very scheme that we are speaking
05:43of.
05:43That is, the RBI Forex swap scheme, that is.
05:48Now the scheme is to support the Indian rupees turned into the vote of confidence.
05:52And the scheme offers a higher interest rate that matures in a time period of three long years.
05:59This is how it in fact works currently.
06:02And this is the very system that's been hailed and it's another indicator of the fact the Indian economy has
06:09been in its stage of growth
06:11and has been showing strong indicators at this given point which in fact supports the data that shows that yes,
06:20the Indian economy is on the right path.
06:22And in fact, as we speak of it, let's take you through the last 24 hours and the developments that's
06:28come into the GDP growth story,
06:30especially in terms of the politics that we're referring to here.
06:34India's bumper 7.8% GDP growth has now turned into a full-blown political and economic showdown.
06:42The government is celebrating the numbers while the opposition and the economists are questioning what lies behind the headline figure.
06:49Union Minister Piyush Goyal has hit back hard at the doubters,
06:53taking a jibe at critiques like former Finance Secretary Subhash Chandra Garg,
06:57saying it's only a few jobless people who call themselves economists and appear on TV channels to harm the country.
07:04Political battle escalated after Garg questioned the revision of the previous year's quarter one GDP
07:09from around 86 lakh crore rupees to 80 lakh crore rupees,
07:14arguing that this would mean current price growth of only 2.6%.
07:19Now, the Congress quickly latched on, accusing the government of fudging the GDP figures and questioning the downward revision.
07:26Meanwhile, the government has rejected the charge, saying the comparison mixes different GDP series altogether
07:32and that the 7.8% figure is now based on the new 2022-2023 base year series and constant
07:41prices.
07:42And now, speaking to India today,
07:44Shubhash Chandragar, which we'll just bring to you in a little while,
07:47is standing by his contention, keeping the GDP data showdown allow you.
07:51Now, before we show that, take a look at the responses that have otherwise come in to the political aspect
07:56of the story.
08:08Shubhash Chandragar, which we'll just bring to you in a little while,
08:29This statement to make that there has been some data fudging done is extremely unfortunate.
08:38I think the attempt of the National Statistics Office has been to ensure that we are transparent and very open
08:44about our data,
08:45about the methodologies that we are using.
08:48We have been doing data user conferences.
08:50We have been doing expert discussions for over the past couple of years explaining the methodology used.
08:57So it's highly, all I can say is highly unfortunate that a different narrative is being built up when the
09:05actual facts are otherwise.
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