FinMin says GDP overestimation due to MCA data a 'misconception'

-Business Today

A release from the government said that media has misinterpreted the out-of-survey enterprises to be enterprises that do not exist in the economy report.

Refuting charges that the GDP numbers put out by the government may be over-estimated due to 'shell' companies which are untraceable, the government has said that the extent of overestimation of GDP in all likelihood is marginal.

Clarifying the problem pointed out by the Technical Report of Services Sector Enterprises in India by the NSSO, a release from the government said that media has misinterpreted the out-of-survey enterprises (as classified for the purposes of surveying the services sector) to be enterprises that do not exist in the economy report.

The release clarified that the survey has used sample of 35,456 enterprises taken from the database of Ministry of Corporate Affairs (MCA). Out of these 38.7 per cent were out-of-survey units. Of the 38.7 per cent out-of-survey enterprises in the NSSO report, out-of-coverage enterprises comprise 21.4 per cent.

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Business Today, 10 May, 2019, https://www.businesstoday.in/current/economy-politics/finmin-says-gdp-overestimation-due-to-mca-data-a-misconception/story/345326.html

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