ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Manufacturing Slowdown in India

New Evidence from a Double Deflation Approach

The real value added in the Indian manufacturing sector for the period 2011–12 to 2016–17 is measured using the double defl ation approach. It is found that the official figures understate manufacturing real value added during the period 2011–12 to 2013–14, and overstate it thereafter, as well as miss an apparent manufacturing contraction that occurred in 2014–15. The results are corroborated by the movement of high frequency indicators that are correlated with manufacturing activity. 

The authors are grateful to the anonymous referee whose comments helped them improve the article.

Nominal value added is the difference between the value of an industrys output and the cost of raw materials or intermediate inputs. Real value added is obtained by deflating nominal value added by suitably chosen price indexes. A proper estimate of real value added is necessary for various rea

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Published On : 20th Jan, 2024

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