The Finance Minister, Mr Pranab Mukherjee, has termed the sharp revision in industrial production data as ‘baffling.'
The industrial production (IIP) data for January was revised downwards from 6.8 per cent to 1.1 per cent on Thursday.
“I can understand if there is error in calculating 0.1 per cent or 0.2 per cent, but from 6.8 per cent to 1.1 per cent, it is totally baffling,” Mr Mukherjee told reporters after laying the foundation for a new corporate office building of Punjab National Bank.
Underscoring the need for integrity in government data, Mr Mukherjee added, “I have asked the authorities concerned to look into why it has taken place and (that) they should be much more careful in the future.”
The Ministry of Statistics and Programme Implementation, while revising the data, accepted that during the compilation of IIP data for January, sugar production was wrongly considered as 134.08 lakh tonnes against the actual 58.09 lakh tonnes. This was because of incorrect reporting by the Directorate of Sugar in the Ministry of Consumer Affairs, Food and Public Distribution.
Immediately after the detection of the error, the revised IIP numbers and growth rates were compiled. Due to this change and minor updating of data received from other agencies, the industrial growth figure was revised for January, as also the cumulative figure for April 2011-January 2012.
No impact on RBI's decision
Bankers do not see any impact of the sharp downward revision of the January industrial output data on the Reserve Bank of India's lending rates decision. As Mr K. R. Kamath, Chairman of Punjab National Bank, said: “The RBI will have its own set of data and it will be guided by that.”
When asked about the possible rate cut in the annual policy announcement on April 17, he said it was a “very difficult task” for the RBI Governor to strike a balance between growth and inflation. “Inflation has not come under control,” he pointed out.