We don’t follow questionable methodologies used by some economies: CEA Nageswaran

Selective scepticism a concern

India’s statistical system does not rely on “questionable methodologies” adopted by some economies, chief economic adviser (CEA) V Anantha Nageswaran said on December 23, pushing back against criticism of the recent high growth numbers.

Responding to questions around six-quarter high 8.2 percent GDP growth in the September quarter, Nageswaran said doubts about methodology tend to emerge only when data beats expectations.

“We are engaged in an exercise of estimation, and all estimation methodologies have limitations,” he said. “But we seem to be particularly fond of questioning our own methods, and much less so those followed elsewhere.”

Nageswaran said India does not use certain techniques that are considered innovations in economies but remain controversial. Among them is the chain price index, which continuously updates price weights over time.

He also said India does not use hedonic price adjustments, a method employed in some developed countries to adjust prices based on changes in product features, particularly in technology goods and houses. Such adjustments, he said, can understate inflation by attributing price changes to quality improvements rather than actual cost increases.

“Hedonic pricing involves estimating prices of individual features,” the CEA said, adding these approaches come with their own assumptions and drawbacks.

Nageswaran said the onus was on the ministry of statistics and programme implementation (MoSPI) to improve communication and transparency around India’s statistical processes.

The ministry should clearly spell out frequently asked questions (FAQs) around data compilation and ensure that datasets are replicable by outside researchers, which would help build confidence in official numbers, he said.

“If outsiders are able to replicate the data, then trust in the data will also increase,” he said.

At the same time, the CEA acknowledged that scepticism may not fully disappear. “Even after that, if people are still willing to criticise then we can’t do much about it. That is part of their DNA,” he said.

Nageswaran’s comments come amid renewed scrutiny of India’s growth estimates following the strong second-quarter print.

The remarks reinforce the government’s broader stance that India’s statistical framework is robust, even as it undergoes further modernisation with new GDP and inflation series planned for release in 2026.