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Data not cooked up, GDP figures to go up further: Government (IANS Special)
By Manish Gupta and Vishav
New Delhi, Feb 19 (IANS) Refuting charges of destroying the credibility of Indian data, the government said the revised GDP figures for demonetisation year was not cooked up and, in fact, the growth rates are likely to go up further due to the GST.
“It’s not cooked up at all. It’s data driven and real. Nobody has manipulated it. It’s possible that sometimes anecdotally it may appear to be an un-understadable kind of result because of the quirkiness in data which takes place on account of abnormal events like demonetisation,” Economic Affairs Secretary Subhash Chandra Garg told IANS.
On January 31, the government revised the Gross Domestic Product (GDP) growth rates by 110 basis points from 7.1 per cent to 8.2 per cent for 2016-17, the year of demonetisation, and by 50 basis points from 6.7 per cent to 7.2 per cent for fiscal 2017-18.
Garg said the growth was reflected mainly in two sectors, construction and financial services, and was absent in sectors like manufacturing and mining when the figures were revised. This was primarily because demonetisation helped the two sectors directly.
“In financial services, the growth is calculated based on several parameters like deposits and many other. Likewise, construction activity went up at that time. There were several incentives which were in place for taking construction activity. The Construction activity actually went up.
“It’s possible that the growth is not reflected in other areas well. There’s no growth revision in manufacturing. There’s no growth revision in mining. It’s possible that it may be quirky but it’s possible,” Garg said, explaining the positive impact of demonetisation on economy.
Apart from defending the possibility of demonetisation jacking up GDP rates, NITI Aayog Vice Chairman Rajiv Kumar went a step further to suggest that the growth rates will see another revision upwards for the years since Goods and Services Tax (GST) was rolled in.
“By the way, this (upward revision) will happen more with the implementation of GST as there are many sectors that have never given tax. Now they will come inside GST. This will increase further. Manufacturing will grow as more of the unorganised sector gets formalised.
“Revised figures can show the increase for the years since GST has been 2017-18 and 2018-19. I will not be surprised at all. Thousands of garment makers never gave any tax, now they are doing. Suddenly, you see garment industry larger than what it was,” Kumar told IANS.
On demonetisation, he said when nearly half of the economy that was running in black and is now included in the formal economy, it had to show the impact. When people decide to bring out their cash, show it as income and pay tax, it suddenly bumps up the activity, he said.
Though the government defends the recent revision of GDP figures along with the new back series of GDP data released last November, which trimmed growth rates in UPA era making Modi government look better in terms of growth, it rejected the recent data on jobs.
On January 31, the government rejected the leaked National Statistical Commission (NSC) report that showed unemployment rate at a 45-year high saying it was not finalised leading to a major backlash from the Opposition with charges of manipulating data.
“Ours is not a command economy, we don’t produce data on orders. Ours is a decentralised and democratic management system. There are institutions which prepare and publish the data that is there… the credibility of Indian data remains very high,” Kumar said.
However, on the allegations that NITI Aayog, which in the words of former Finance Minister Yashwant Sinha “has nothing to do with data and statistics”, got involved, manipulated and revised the figures, Kumar said the Aayog will continue to engage in data.
“NITI Aayog by its very nature must be engaged in improving the statistical system of India. I consider it my duty to make sure our Indian fiscal system is modernised, strengthened and remains as credible as ever. To that extent, NITI Aayog being the think tank that uses data for evidence-based enquiry and policy making will continue to be involved in data,” he stated.
He, however, said the Aayog will never think of usurping whatever the Central Statistics Office (CSO) and the Ministry of Statistics and Programme Implementation (MoSPI) does but will remain interested in working with MoSPI to help it evolve so that the quality of data collected is improved and is in sync with each other.
(Manish Gupta can be contacted at [email protected] and Vishav at [email protected])
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.