For example, goods inflation (as measured by the manufacturing GVA deflator) is strangely negative for 10 quarters, which has led to an unusual jump in the sector’s real growth rate. AdvertisementA key problem was the use of inappropriate data sources, notably proxying the performance of the informal sector by using data from the formal sector. Yet official GDP growth figures (the shaded area) portray a picture of stable growth over the entire period. This misreading complicated macroeconomic policy: At various periods the data signalled strength when the economy was weak, and in others, it suggested that policy should be eased when growth was strong. More recently, why was there pressure on the rupee if real growth was so much greater than anywhere in the world?

Source: Indian Express March 14, 2026 01:15 UTC