GDP mis-estimation

Former Chief Economic Adviser Arvind Subramanian’s revelation that India’s GDP growth was grossly overestimated nailed the government’s lie. According to the eminent economist, GDP growth during 2011-12 to 2016-17 was actually 4.5 per cent rather than the 7 per cent flaunted by the government data. It was a telling argument by him that the growth numbers did not match or correlate with key indicators of economic growth such as electricity, consumption, automobile sales, investment and index of industrial production and export earnings, among others.

We were wondering how the growth rate could be so high when the economy was perceptibly showing signs of faltering. It was common sense that the growth rates could not be high as claimed by the government when demonetisation and GST had debilitated economic activities. If the claimed growth were real, unemployment rate would not have been all-time high.

Instead of treating it as a prestige issue and going in for a ‘point-by-point’ rebuttal of Subramanian’s well-reasoned thesis, the government should be open to correction in the country’s interest. The attempt at validating numbers saying they were arrived at following global standards and endorsed by international agencies would be self-defeating. Arvind Subramanian was right in saying that the future of 1.4 billion people rides on getting the numbers right. The government should take his word in the right spirit and act accordingly.

Maruthancode, TN

This refers to ‘Now, postmen will deliver bank accounts to TB patients’ (June 12). It is heartening news and India Post Payments Bank must be lauded for taking the initiative in helping TB patients access cash support by opening bank accounts from the comfort of their homes through postmen. Our postmen have been integral part of our lives and they have served the nation for decades against heavy odds be it rain, hail or storm. In fact they are the pioneers who reached for last mile connectivity generations ago, cycling on dusty roads. It is advisable TB hospitals, villagers and relatives of TB patients are made aware of this ambitious step.

Vadodara

The Right to Education Act (RTE) is one of the finest pieces of legislation of Independent India for it had made not only the right to education for the children in the age group 6-14 a fundamental right but also helped us to come closer to achieving the long-elusive dream of universalisation of primary education. In this context, the pragmatic recommendation of the draft new education policy (NEP) to put children three years and more in stimulating nursing environment by extending the scope of RTE Act deserves praise. Given the lack of political will to ensure the proper implementation of the RTE Act, the objective of equality enshrined in the Act remains unachieved.

It is time the Centre turned its focus towards making primary education more equitable and holistic. Enhancing our spending on education with a thrust on improving learning outcomes among young learners by dispensing with rote-centred learning also brooks no delay.

Sholavandan, TN

This refers to ‘₹2.05-lakh crore frauds in 11 years; ICICI, SBI, and HDFC worst hit’ (June 13). The report indicates that banks are failing to prevent and detect the occurrence of frauds. The quality of governance, vigilance, audit and inspection needs to be more effective and must deliver the expected results. Loans and advances are more exposed to frauds and, therefore, of paramount importance is the need to improve the credit appraisal process and secure the debt until its full liquidation.

Though every bank has its own policies and systems, fraudsters, in connivance with ‘insiders’, take advantage of the loopholes. The application of preventive vigilance systems has been ineffective. Also, technology is not being optimally used to make electronic transactions secure.

Changanacherry, Kerala

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