"GDP Is Overstated" Says Morgan Stanley's Chief Global Strategist Ruchir Sharma

The Logical Indian had earlier published an article on how the latest GDP figure given by the government, growing at 7.6% could be an overestimation of the economy owing to the unusually large proportion of discrepancies (as a percentage of GDP growth). Yesterday, Ruchir Sharma, the chief global strategist at Morgan Stanley has flagged the GDP of India and has called the GDP number being “overstated”.

Speaking to PTI, he said, “I think India’s GDP data is overstated.”

Persisting doubts

Ruchir Sharma did convey India’s FDI inflows have been a bright spot. However, he has cast his disapproval of the investment climate in India where he has commented that private investment has been very poor and the investment is largely being spearheaded by the government sector.

The GDP calculation, its methodology and its conclusion have also been espoused by the likes of Chief Statistician of India T.C.A. Anant. The verdict seems to be split, there are two views about the GDP calculation method in India.

The Logical Indian would like to raise the following questions to add value to the debate by going beyond the debate of whether the GDP is growing at close to 8%:

1. If among our readers, there are people who are looking for jobs, kindly share your view on how much is the job availability especially in the private sector?
2. If there are entrepreneurs among our readers, do share your stories regarding consumption patterns of people, investment climate etc.
3. Are you able to save more ? Are you able to spend more?

Do share your thoughts and your personal experiences of the same. We will be happy to share your thoughts and opinions about the same.