Analysis of revisions in Indian GDP data
- Amey Sapre & Rajeswari Sengupta
- May 2018
- National Institute of Public Finance and Policy (NIPFP); Indira Gandhi Institute of Development Research
- India
Revisions in GDP data have important implications for policy formulations and business decisions. While Advance Estimates of GDP may be important for macroeconomic assessment, understanding the revision cycle helps us to distinguish between data changes and genuine macroeconomic fluctuations. In the context of revisions in Indian GDP, historic revisions suggest that the focus ought to be on data quality and choice of high frequency indicators used for the initial estimates so as to contain the magnitude of revisions and improve accuracy over the revision cycle.
