National Accounts based on UN norms: FinMin on US report

By: | Published: July 29, 2016 5:59 PM

Government today said it is aware of the US report questioning India's growth number, but asserted that the Central Statistics Office (CSO) follows United Nations for preparing the national accounts.

He further said the gross foreign direct investment inflows were the highest at USD 55.5 billion in 2015-16 indicates positive global investor sentiments towards the Indian economy. (Reuters)He further said the gross foreign direct investment inflows were the highest at USD 55.5 billion in 2015-16 indicates positive global investor sentiments towards the Indian economy. (Reuters)

Government today said it is aware of the US report questioning India’s growth number, but asserted that the Central Statistics Office (CSO) follows United Nations for preparing the national accounts.

The ‘Investment Climate Statements for 2016’, brought out by the Bureau of Economic and Business Affairs of the US, has mentioned that depressed investor sentiment suggests that the approximately 7.5 per cent growth rate of India may be “overstated”.

In a written reply in Lok Sabha to a question regarding the report, Minister of State for Finance Arjun Ram Mehgwal said that government takes note of and useful recommendations of international reports and takes as inputs for policy making.

However, the Minister added: “The methodology followed (by CSO) in the collection, compilation and dissemination of the National Accounts Statistics is based on, to the extent possible, the recommendations of System of National Accounts, 2008 of the United Nations”.

He further said the gross foreign direct investment inflows were the highest at USD 55.5 billion in 2015-16 indicates positive global investor sentiments towards the Indian economy.

“In 2016-17, the data available for April-May indicates a continuance of robust inflows,” the Minister said.

Besides, GDP growth is also significantly determined by final consumption expenditure which contributed about 58 per cent of the GDP growth in 2015-16, which has been estimated at 7.6 per cent by the CSO.

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