Data revisions in India: Implications for monetary policy

▶ This paper shows that revisions to GDP growth and inflation in India are significant, and cannot be characterized as either containing pure news or pure noise. ▶ We also find that there is a significant predictable component in the revisions to GDP growth and inflation. ▶ Our findings suggest that if the Reserve Bank of India were to follow a Taylor rule for its monetary policy formulation, then the interest rate based on the preliminary data would be much lower than the one based on the fully revised data.