A parliamentary panel headed by veteran BJP leader Murli Manohar Joshi, in a draft report prepared by it, has questioned the mechanism for calculating the country’s Gross Domestic Product (GDP) and asserted that the methodology needs review to reflect the ground reality.
The report, which was tabled in the Estimates Committee meeting on Thursday, created a rift among the BJP parliamentarians of the panel, as Mr Joshi was in favour of adopting the report, while other party members led by MP Nishikant Dubey strongly opposed it.
While Mr Joshi was opposed by his own party MPs over the report, the opposition parliamentarians came out in his support at the meeting, according to a source who was present there.
“Detailed examination reveals several inadequacies in the GDP measuring mechanism, most noticeable being depletion of natural resources not being taken into consideration,” the report stated.
It also said there is no mechanism to assess whether increase in GDP leads to happiness among the people.
In the report, the committee concluded that the mechanism developed for GDP estimation needs review.
It should reflect the ground reality, it further said.
Countering the claims in the report, Mr Dubey said India has adopted and followed all globally accepted parameters for calculating the GDP, and in an era of globalisation, the country cannot isolate itself by developing an indigenous method to calculate the index.
He further said if the country does so, it will severely impact flow of foreign investment and the country’s ratings by international agencies.
About calculation of unemployment in the country, the report claimed annual employment and unemployment surveys have their own limitations, and said it is disturbing to note that the most precise period for which complete data on employment is available is 2011-12.