2 Feb 2015
India goes for rebasing and adopts new methodology for GDP computations
FXStreet (Mumbai) - The Statistics Office of the government of India announced the rebasing and revision of historical GDP data on Friday, with two key changes implemented. First, the base year for real GDP has been moved from fiscal year 2004/05 to 2011/12. The data should now more accurately reflect the true structure of the economy.
According to the new methodology, India's economic growth in the 2014/2015 fiscal year accelerated more than previously indicated, growing 6.6 %, year-on-year, in 2014/15.
The Indian economy grew at revised 4.9% and 6.9% during the 2012/13, 2013/14 fiscal years, respectively.
New Methodology
In a major overhaul of the way India’s GDP is calculated, the Central Statistics Office has started measuring the country’s economic growth by gross value-added (GVA) at basic prices, replacing the practice of measuring it by GDP at factor cost.
The new measurement under the new base year of 2011-12, replacing 2004-05, was released on Friday for three years to 2013-14.
The new method was recommended by the United Nations System of National Accounts and will make India’s GDP growth numbers comparable with that of developed nations.
GVA at basic prices will add the net of production taxes and subsidies to GDP at factor cost. The change in base year is likely to lead to a higher GDP.
Next week, the statistics office will release the first advance estimates of GDP for the 2014/15 fiscal year, which will go into the finance minister's budget calculation for the current fiscal year (2015/16).
According to the new methodology, India's economic growth in the 2014/2015 fiscal year accelerated more than previously indicated, growing 6.6 %, year-on-year, in 2014/15.
The Indian economy grew at revised 4.9% and 6.9% during the 2012/13, 2013/14 fiscal years, respectively.
New Methodology
In a major overhaul of the way India’s GDP is calculated, the Central Statistics Office has started measuring the country’s economic growth by gross value-added (GVA) at basic prices, replacing the practice of measuring it by GDP at factor cost.
The new measurement under the new base year of 2011-12, replacing 2004-05, was released on Friday for three years to 2013-14.
The new method was recommended by the United Nations System of National Accounts and will make India’s GDP growth numbers comparable with that of developed nations.
GVA at basic prices will add the net of production taxes and subsidies to GDP at factor cost. The change in base year is likely to lead to a higher GDP.
Next week, the statistics office will release the first advance estimates of GDP for the 2014/15 fiscal year, which will go into the finance minister's budget calculation for the current fiscal year (2015/16).