New Forecasting Model Boosts Accuracy of India's Economic Growth Predictions
Forecasting India's economic growth is crucial for making effective policies. A study used a special method called Time Varying Parameter Regression to predict growth rates in India. They looked at different factors like money, trade, and production to make their predictions. The study found that this method was better at forecasting than other models. They discovered that focusing on demand-side factors was best for predicting total GDP and industrial sector growth, while supply-side factors were better for services sector growth. Using both types of factors was best for predicting agriculture sector growth.