New Growth Numbers

The Economic Times, February 3, 2015 Chat Room New Numbers a Good Measure Apropos ‘New Base Turns Springboard for 7% Leap in FY15’(ET,Jan 31), a change in base year may not change ground level realities. Although IMF and rating agencies may have to find other reasons to keep India down. But it is comforting to find that slowly we are moving to a scenario where more authentic and current figures will guide our own planning and assessment of our country’s position vis-a-vis other developing nations by other countries and rating agencies. The previous RBI governor Duvvuri Subbarao had often expressed anguish over the obsoleteness of figures that formed the basis for crucial policy decisions. India was late in introducing even the concept of purchase power parity while making projections and comparisons, and has been conservative in assessing the country’s net worth, letting other countries show India in poor light. We should not delay creating a reliable record of our country’s resources*. M G WARRIER Thiruvananthapuram *The submitted version (published by Business Standard on February 2) concluded thus: “There should be no further delay in creating a reliable record of our country’s resources, irrespective of ownership. Gross assets should be classified into categories such as: assets that have to be protected, but are not available for immediate use(these may include heritage assets, wealth with religious organisations and so on); assets that can be brought to the mainstream and put to productive use; and assets that should be part of the planning process with nation’s priorities in economic development in view.”