Notably, the members of all the aforementioned BCDCs are independent scholars.
As a result, the decision regarding the dating of business cycles is not political.
This is important in a country like India where GDP numbers are contentious and political parties try to score points on these numbers.
Also, the BCDCs are created by independent non-profit organizations.
Hence, some of the criteria of dating business cycles for CEPR differ from those for the NBER, although similar definitions of a recession are adopted by both these organizations.
Even an emerging market economy such as Brazil has a BCDC known as O Comitê de Datação de Ciclos Econômicos (Codace), created by the Brazilian Institute of Economics.
It was founded in 2005 and replicates the experience of the NBER BCDC and CEPR. By maintaining a chronology of business cycles, India will be able to better monitor the economy.
A BCDC can also maintain an index of coincident, leading and lagging indicators for the Indian economy.TAG suggested a methodological framework for the construction of coincident, leading and lagging indicators along with a composite index for the Indian economy.It also reviewed different techniques adopted by various international organizations. Whether a BCDC should be part of the government, the RBI or an independent research organization with high credibility is debatable.International experiences of business cycle dating committees The NBER’s BCDC maintains a chronology of the US business cycle.NBER is a private, non-profit, non-partisan organization conducting economic research and regarded as authoritative by both academic researchers and the public at large.CEPR dates the business cycle for the euro area as a whole and not for any individual country.