GDP estimation for 2011-12

In past several posts under the category Finance, I have been saying that the Governments have no clue as to what is happening on financial front. It is just groping in dark. See another example:

As per government estimates, Indian economy grew by 6.9 % in 2011-12 fiscal. The overall growth data was computed after taking into account 6.8 per cent industrial output in January. However, as per the recent data by the Central Statistical Organisation (CSO) the January industrial output works out to be 1.1 per cent and not 6.8 per cent as estimated earlier. Accordingly, the cumulative growth figure for April-January (2011-12) was lowered to 3.4 per cent, from 4 per cent. The downward revision, sources said, could have a bearing on the economic growth figures for the last fiscal, which was 6.9 per cent, the lowest in the previous three financial years. Finance Minister Pranab Mukherjee had already asked the concerned authorities to look into the impact of sharp revision of the Index of Industrial Production (IIP) numbers and termed it as “totally baffling”. “I can understand if there is error in calculating 0.1 per cent of 0.2 per cent, but from 6.8 per cent to 1.1 per cent, it is totally baffling,” Mukherjee had said. (Source: http://m.economictimes.com/news/economy/indicators/iip-blunder-government-may-lower-gdp-estimation-for-2011-12-fiscal/articleshow/12673255.cms)

So what should we do? Keep your fingers crossed. Stay away from schemes offering very high returns. Make no smart investment. Keep your money in your pocket. If you have invested in markets, start booking profits on every rise. Start a Kitchen Garden and save money on vegetables.

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One thought on “GDP estimation for 2011-12

  1. Pingback: Tacit Confession of guilt by Prime Minister Man Mohan Singh on economic crises | Sandeep Bhalla's Blog

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