CEA counters Arvind Subramanian's claim on GDP estimates, says hard to create wrong narrative

In a recent research paper published at Harvard University that formed the basis of his piece in The Indian Express, Subramanian concluded that the country's growth has been overestimated by around 2.5 percentage points between 2011-12 and 2016-17. While official estimates pegged average annual growth at around 7 per cent during this period, actual GDP growth is likely to have been lower, at around 4.5 per cent, he had said. The former CEA claims kickstarted a debate with the Prime Minister's Economic Advisory Council (EAC-PM) issuing a point-by-point rebuttal eventually. In its response, the EAC-PM stated that Subramanian had cherry-picked a few indicators and performed a rather unconvincing regresssion analysis to prove his hypothesis that India's GDP was overestimated post 2011-12. Subramanian cherry-picked few indicators to prove his hypothesis: EAC-PM rebuts ex-CEA's claims K Subramanian further pointed out 8 per cent sustained growth is required for India to achieve USD 5 trillion economy by 2024-25, citing investment to be the key driver for pushing the economy to the top gear and ensure job creation. 'Investment cannot go up unless the cost of capital goes down. One key opportunity we have is that the cost of capital internationally is very low, liquidity is very high there and as a result, there is an opportunity for both firms and sovereign as well to think about going and raising money abroad,' he said. DailyhuntDisclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: The Indian Expresshttp://www.theseasonedcook.com/UserProfile/tabid/42/userId/1050623/Default.aspx

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