Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

India Correcting Factory Data Twice in Day Stokes Quality Worry

June 13 (Bloomberg) -- India corrected its latest report on industrial production twice just a day after publishing the data, stoking concern over the quality of pivotal economic figures.

Output rose 2.3 percent in April from a year earlier, higher than the 2 percent first reported, the Statistics Ministry said today. A statement two-and-a-half hours earlier put the expansion at 2.2 percent. Errors in electricity production inputs led to the revisions, the ministry said.

Official data that are often incomplete or months out of date contribute to a statistical fog that adds to the challenge of assessing Asia’s third-largest economy. Reserve Bank of India Governor Duvvuri Subbarao has said the nation’s policy makers have to contend with both an uncertain future and an uncertain past because of more frequent revisions than elsewhere.

“Industrial-production data quality was always suspect and something needs to be done,” said Prasanna Ananthasubramanian, an economist at ICICI Securities Primary Dealership Ltd. in Mumbai. “Data quality in general needs to improve.”

The government must focus on getting factory-output growth reports right as they are a key input for working out initial gross domestic product figures, he said.

The changed report shows industrial-production growth was still slower than March’s 3.4 percent pace. The median estimate in a Bloomberg News survey was for an expansion of 2.4 percent.

In April last year, government revisions cut January 2012’s factory-output growth to 1.1 percent from 6.8 percent after an error was found in sugar output calculations.

“Macroeconomic statistics are adequate for surveillance, but weaknesses remain in the timeliness and coverage of certain statistical series,” the International Monetary Fund said in a report in February.

To contact the reporters on this story: Tushar Dhara in New Delhi at tdhara1@bloomberg.net; Unni Krishnan in New Delhi at ukrishnan2@bloomberg.net;

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.