Seasonal adjustment of Indian industrial production reveals data quality issues.
The researchers adjusted the Indian Index of Industrial Production (IIP) for seasonal variations in manufacturing data. They found that about half of the items showed seasonal patterns, especially in food, beverages, textiles, leather, and apparels. Seasonal adjustment created smoother data for predicting GDP growth, but also revealed data quality issues like outliers and changes in growth rates. Both the adjusted and actual IIP data were not enough to explain manufacturing sector growth.