P. Chidambaram: CSO overlooked upturn signals of Indian economy, growth likely to be 5.5%
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"In the second half (of current fiscal) there are indications of green shoots in the economy", he added.
The CSO has extrapolated data for April-November into the year, he said, adding, "while that would be normally correct when the trend line continues in the same direction, when the trend line changes, extrapolation is not the method that the institution should follow to project the future.
"We believe that the upturn has begun, it is a very low curve, it's not V-shaped upturn. It's perhaps a very long and shallow U but we believe that the upturn has started and we believe that in the second half of this fiscal there are indications of green shoots in the economy," he added.
CSO's advance growth estimate of 5 per cent earlier in the week for the current fiscal has evoked sharp reaction from Finance Ministry which said that it has based the projection on data available till November, and ignored the signs of
The Minister said that government will be taking steps in the "remaining weeks of this month of this fiscal year and measures that we will take going into the next fiscal year will be measures that will put India back to 8 per cent growth path."
India, he added, was still the fastest growing economy in the world after China, Philippines and Indonesia.
Chidambaram said while the 5.5 per cent growth rate is "satisfactory", for India a 8 per cent growth rate is imperative to generate jobs to provide employment to young people.
"The measures that we have taken... and will take in the coming days will put India to 8 per cent path," he said, adding that upturn has started.
The Indian economy grew by 5.4 per cent in the first half of the current fiscal.