Skip to content
Search

Latest Stories

Report casts fresh doubt on India's economic growth figures

A GOVERNMENT agency report has cast fresh doubts on India's economic growth figures, in a blow to prime minister Narendra Modi as he seeks re-election in ongoing polls.

Data compiled by India's National Sample Survey Office (NSSO) found that there were significant gaps in how the growth figures of Asia's third-largest economy are calculated.


Modi regularly trumpets his economic credentials but the opposition Congress party says his government spins statistics to make their record on the economy look better than previous administrations.

The NSSO study found that more than one-third of companies included in a database used to calculate India's economic growth were "closed, out of coverage, or non-traceable".

"India's GDP figures and data have been under scrutiny for sometime now internationally," Ashutosh Datar, a Mumbai-based economist said.

"These new reports raise more questions about their credibility and accuracy," he added.

The report was released last week but only came to light today (8) when it was reported by the Mint business daily.

Modi and Congress leader Rahul Gandhi have clashed over gross domestic product (GDP) numbers since Modi's Bharatiya Janata Party (BJP)-led administration last year revised down growth figures for when Congress was in power.

The revision, based on a new way of calculating GDP that Modi's regime introduced four years ago, saw average growth under Congress from 2005-2012 fall below that recorded by the BJP since it took over the government in 2014.

Modi's government has defended the changes, saying they bring India more in line with how GDP is calculated in other major economies.

The new data is the second time this year that statistics released by a government agency have threatened to embarrass the government.

In January, data leaked from the statistics ministry showed India's unemployment rate hitting a 45-year-high of 6.1 per cent in 2017-18.

GDP growth slowed from 7.1 per cent to 6.6 per cent in the third quarter of the 2018-19 financial year, data released in February showed.

Economists say that the Indian economy needs to grow at least seven per cent per annum to create jobs for the estimated one million people entering the labour market each month.

The results of India's election are due on May 23.

(AFP)

More For You

Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less
Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less
Rachel Reeves

Reeves pledged to keep a tight hold on spending to reduce inflation and borrowing costs amid concerns over Britain’s fiscal outlook.

Getty Images

Reeves urges ministers to back Bank of England on inflation

CHANCELLOR Rachel Reeves has said the government must support the Bank of England in bringing down inflation while also focusing on growth, ahead of a budget later this year that is expected to include tax rises.

Last week, Reeves said the economy was not “broken” as she announced November 26 as the date for her annual budget.

Keep ReadingShow less