NEW DELHI:India’s economic growth was up 6.9 per cent from 4.7 per cent in the ongoing financial year ending on March 31. A change in base year for computing national accounts pushed up the economic growth rate for 2013-14.
Under the new methodology, the measurement of gross domestic product or the GDP would also include informal and under-represented sectors. These would also look items and indicators like growth in consumption of smart phones and LEDs.
India’s per capita income, a gauge for assessing standard of living, for 2013-14 is up at Rs 6,699 per month for 2013-14 as against the earlier estimate of Rs 6,198.33 after the government updated the base year for measuring national accounts.
Similarly, the economic growth rate for 2012-13 has been revised upwards to 5.1 per cent, compared with 4.5 per cent estimated earlier.
The changes follow a revision in the base for calculating national accounts to 2011-12 from 2004-05. The base year was last revised in January 2010.
On impact of the new data on fiscal deficit, which is calculated as a percentage of the GDP, Chief Statistician T C A Anant said: “The size of economy has marginally declined to Rs 113.45 lakh crore in 2013-14 under the new series from Rs 113.55 lakh crore (under the old series).”
Similarly, the size of the economy in 2012-13 declined under the new series to Rs 99.88 lakh crore from Rs 101.13 lakh crore at current market prices.
According to the government change in the base year and also the conceptual framework, “will improve ease of understanding (data) for analysis and facilitate international compatibility”.
The new series, it said, will also affect a wide range of indicators like trends in public expenditure, taxes and public sector debt that are conventionally analysed in terms of their ratios to nominal GDP.
Moreover, the official press note said that the GDP at factor cost will no longer be discussed, instead Gross Value Added (GVA) will be analysed in releases.
Fiscal deficit overshoots budget target
Meanwhile, India's fiscal deficit overshot the budget estimate of Rs 5.31 lakh crore by December-end and may prompt the government to take tough steps in the remaining part of 2014-15 to restrict it to 4.1 per cent of GDP.
However, the Coal India disinvestment, fetching the exchequer Rs 22,577 crore, will provide some comfort to government which is racing against time to keep the deficit in check.