FM clarifies doubts over 7.4% GDP

Finance Minister Arun Jaitley sought to dispel doubts over the new growth figure of 7.4 per cent for 2014-15, saying said the GDP calculations are made independently by the CSO, which is a credible organisation.

"They (CSO) do their independent exercises. Even Prime Ministers and Finance Ministers come to know of the figures just when they are released. They do not even consult us on the figures. We make our own estimations, they make their own estimations," he said in the Rajya Sabha.

Jaitley was referring to doubts expressed by various sections over the GDP figure of 7.4 per cent for 2014-15 as projected by the Central Statistical Organisation's (CSO).

Calculating national income with 2011-12 as the base year, the CSO revised the growth for 2013-14 to 6.9 per cent. Growth rate was earlier calculated with 2004-05 as base year.

Members, during the debate on General Budget, contended that high growth rate as projected was not visible on the ground.

"The last year of the UPA in which GDP was 4.7 per cent, suddenly became 6.9 per cent. India's growth rate is not UPA/NDA issue. Across the board they elevated the figure to make it internationally competitive," Jaitley said.

CSO, he emphasised, is a "credible organisation". CSO is not an organisation which either the United Progressive Alliance or the National Democratic Alliance government can control, he added.

"Some people say they are not getting the feel of that figure. I believe as the debate goes on, it will certainly improve, and our understanding will become better," he said.

Jaitley also said that global economy is facing challenge. "We are certainly recovering, but the recovery should be faster than what is actually happening, growth rates are moving upwards," he said.