A government official defended the calculations saying that since the tax collections match up with the database, it is not unusable.
Prominent statisticians have dismissed fresh concerns on growth projections raised by a National Sample Survey Office (NSSO) study. An article in The Hindu quoted statisticians as saying the discrepancies pointed out by NSSO in the new Ministry of Corporate Affairs (MCA-21) database will have no major impact on growth.
The government has started using the MCA-21 database in calculating the Gross Domestic Product and the Gross Value Added
The Mint had on May 8 pointed out to the NSSO study released last week that found around 36 percent of companies included in the MCA-21 database either untraceable or wrongly classified.
Titled ‘Technical Report on Service Sector Enterprises in India’, the survey found that out of the 39 percent out-of-survey units in MCA, 21 percent were found to be out of coverage and another 12 percent were non-traceable (which in number is nearly 4000 units). In case of EC and BR frames, nearly 6 percent and 14 percent were out of coverage respectively even though there were updations of these two frames.
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