NSO Reports Discrepancies of Rs 2.59 Lakh Crore in FY24 GDP Numbers, Reflects Ongoing Data Accuracy Efforts
Article:
The National Statistical Office (NSO) has revealed discrepancies amounting to Rs 2.59 lakh crore in the computation of advance estimates for India’s Gross Domestic Product (GDP) during the fiscal year 2023-24. This comes as a contrast to the figures of (-) Rs 3.80 lakh crore in 2022-23 and (-) Rs 4.47 lakh crore in 2021-22.
The NSO recently released its initial advance estimates for national accounts, projecting a 7.3% growth in GDP for 2023-24, slightly higher than the 7.2% recorded in 2022-23. Discrepancies in GDP data refer to variations between national income computed through the production method and the expenditure method.
Experts acknowledge that some level of discrepancies is inherent in national accounts due to delays in information reporting by various entities, including state governments. Despite these natural discrepancies, there is a collective effort to ensure accurate reporting.
The computation of national income involves three methods: production, expenditure, and income. The discrepancies in the national accounts data for the current fiscal year are seen as part of the ongoing process to present data as accurately as possible.
While it is acknowledged that discrepancies are unavoidable to some extent, there is a call for continuous efforts by the government to minimize these variations. The NSO’s initial estimates for the fiscal year also indicate that the country’s gross value added (GVA) is projected to grow at 6.9% in 2023-24, slightly lower than the 7% recorded in the previous fiscal year.
In conclusion, the reported discrepancies highlight the complexities involved in accurately assessing and estimating a country’s economic performance. As India aims for consistent economic growth, addressing and minimizing such discrepancies in GDP data remains a key focus to provide reliable and comprehensive information for policymakers, businesses, and the public.
