Thursday, 11 July 2019
Former Chief Economic Adviser (CEA) Arvind Subramanian on July 10 has defended his stance that the gross domestic product (GDP) was overestimated by saying he used a framework to validate the GDP from the demand side.
"I have used a framework to validate, and not to estimate," he said and added that the GDP deflator has been underestimated. "Now, those who have to prove that were are close to achieving our GDP estimation are under pressure," he said.
The former CEA said that India sustained high growth rate post 2011, despite negative macros. He said that some major macro-economic shocks after 2011 like a collapse in exports, twin balance sheet crisis, UPA II policy paralysis, severe and consecutive agricultural droughts, and demonetisation lead to key macro engines to stall.