“Does the new series represent a fuller description of the manufacturing value added, or is it an overestimation?” the authors wrote.
Higher manufacturing growth rate gives “rise to serious doubts about the veracity of new estimates” and is at “variance with other macroeconomic correlates,” wrote Dholakia, an external member on the monetary policy committee and a management professor.
The Reserve Bank of India has maintained its full-year growth forecast at 7.4 per cent, while flagging risks from high oil prices and trade tensions turning into a currency war. The central bank increased policy rates twice since June to curb inflationary pressures.
Dholakia has been advocating lower interest rates to support growth and was the only member to oppose a rate increase at the August meeting.