Asian Paints Clarifies CEO Did Not 'Question The Sanctity Of GDP Numbers'

Asian Paints has come forward to clear the air regarding comments made by its CEO, Amit Syngle, on India’s gross domestic product (GDP) at a recent investor conference.

What Happened: In a regulatory filing on Wednesday, refuting the misinterpretation of Syngle’s comments on the national GDP that were circulated on social media and in media articles. The comments were made during an investor conference held on May 9, 2024.

The company stated that Syngle’s remarks were in response to a specific query concerning the correlation between the paint industry’s growth and the GDP. Syngle pointed out that the correlation has been fluctuating recently, making it challenging to establish a direct link, unlike in the past. This led to a suggestion to scrutinise the GDP data to comprehend the reasons for this variance.

“Historically, the paint industry was seen growing at a multiple of 1.5 to 1.75 times the GDP growth; off late, this correlation was distorted,” the company pointed out in the regulatory filing.

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Asian Paints stressed that Syngle’s comments were not meant to question the integrity of the GDP figures — as is being portrayed in the posts and articles.

Why It Matters: Syngle’s comments about correlation between GDP and paint industry have been used in the media to question the sanctity of GDP numbers. The Kerala Congress on their X handle posted Syngle’s comments that government was projecting fake GDP data.

“Is the fifth largest economy claim based on fake GDP data? What everyone was saying is confirmed by Asian Paints MD & CEO Mr. Amit Syngle. He said that there is no correlation between GDP numbers and underlying sectors. GDP is off by a huge margin!”, Kerala Congress wrote in the X post.

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