The indicators chosen (credit, exports, imports and electricity) are simple, reliable, and typically not produced by the agency that estimates GDP. In the first period, the India data point (red) is bang on the line, indicating that it is a normal country: India’s reported GDP growth is consistent with the cross-country relationship. Reproducing the detailed methodology underlying the GDP estimates is impossible for outside researchers, so it is difficult to trace the source of the problem. Growth estimates matter not just for reputational reasons but critically for internal policy-making. In reality, weak job growth and acute financial sector stress may have simply stemmed from modest GDP growth.

Source: Indian Express June 10, 2019 18:45 UTC