India revises up 2013/14 GDP growth to 6.9 percent

[SrNair]

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NEW DELHI (Reuters) - India revised up its economic growth to 6.9 percent from 4.7 percent in the fiscal year to March 2014 on Friday after the government changed the formula to measure the economy, a move that will make it easier for the government to meet fiscal deficit goals.
The new measurement of gross domestic product (GDP) includes under-represented and informal economic sectors as well as items such as smart phones and LED television sets.
The government also revised its GDP for 2012/13 to 5.1 percent from 4.5 percent earlier.
New Delhi revises the method of calculating national accounts and other macro data every five years, bringing in a newer base year and adjusting for changes in the economy.
It will now use 2011/12 as the new base year, instead of 2004/05.

(Reporting by Manoj Kumar; Editing by Malini Menon)
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India revises up 2013/14 GDP growth to 6.9 percent

 

[SrNair]

@nair @acetophenol @gslv mk3 @sancho @levina @Lord Zen @jarves @SpArK @kurup @ito @magudi @Ravi Nair and others.

A new development in our economy.

 

[Ind4Ever]

What doest it mean 2015-2016 will be 9 %

 

[farhan_9909]

on the other hand,our ishaq dar sahab is still using 1999-2000 as base year.

 

[A$HU]

The central statistics office (CSO) has come out with a new series of national accounts with 2011-12 as base year for computing economic growth rate. This will increase the size of economy which in turn will help in lowering of fiscal deficit, computed as a proportion of the Gross Domestic Product (GDP). Post the revision, FY14 GDP growth stands at 6.9 percent (from 4.7 percent) and FY13 at 5.1 percent. This changes are done once in five years to keep pace with the changes in the economy. From now on, CSO will measure growth by gross value-added at basic prices, instead of by GDP at factor cost. The government has projected fiscal deficit target of stands at 4.1 percent of GDP for the current financial year. Soumya Kanti Ghosh, Chief Economic Advisor, SBI , feels there would be a material difference in numbers because a new methodology has been adopted. “They have covered more sectors, more amount of financial intermediation, revision of labour activities, then also looked into the organized sector and the unorganized sector activity so the problem of this ASI data coming two years later, and therefore inserting the GDP data, the numbers at first instance will look much better because the size of the economy as been an issue,” he said. Former CSO Pronob Sen said the new numbers are as per market prices. “Basically it means that in 2013-14 for various reasons, the subsidy element had probably dropped quite sharply and since the subsidy is deducted, lowering of the subsidy pushes up the figure. So it’s basically getting the data on the subsidy.” According to Sen, it’s not just a scientific calculation. “What has happened when we moved to the new base year is we’ve actually got better data. Basically if you look for instance in the corporate sector, we were earlier going with the RBI forecast and which were based on 2500 corporates. This time around we are using the MCA21data base which is five lakh companies as compared to 2500. So the quality of data has improved,” he added. Gaurav Kapur of Royal Bank of Scotland, feels with the new numbers at market prices and with a much richer corporate data one is getting a better estimate of the overall GDP – which is the goal at the end of the day for any exercise, when one looks at statistics. “As it is a change in the base year would have mean slightly higher GDP growth because of the change in prices. However, the fact that you are capturing more data and especially in an economy the size of India it is crucial that we capture scientifically as much as possible and an accurately as possible I would say it is a good first start,” he added


Base year revision impact: FY14 GDP at 6.9%, FY13 at 5.1% - Moneycontrol.com

on the other hand,our ishaq dar sahab is still using 1999-2000 as base year.

So what will be the magnitude of change in pakistan's nominal gdp both absolute and growth rate wise after the revision?

 

[SrNair]

on the other hand,our ishaq dar sahab is still using 1999-2000 as base year.

What ??
Why are they still use 15 year old base year ?

What doest it mean 2015-2016 will be 9 %

An 8+% GDP is almost sure .Lets see.

 

[MohitV]

even if it reaches double digit which it reached a few years back.....wat worries me is ...if after 5 yrs we get a weak leadership then all this will become useless after that no foreign investor will trust us ever again for a long long time ...we wont be taken seriously ever again



damn i have become such a pessimistic a**hole

 

[janon]

GDP growth through growth redefinition?

In the 1980s, the congress was famous for "Poverty reduction by poverty redefinition".

 

[Ind4Ever]

What ??
Why are they still use 15 year old base year ?



An 8+% GDP is almost sure .Lets see.

What about the income ? will it same as previous calculation method ? Do u even get my point ?

 

[MohitV]

GDP growth through growth redefinition?

In the 1980s, the congress was famous for "Poverty reduction by poverty redefinition".

u must be very old

 

[SrNair]

What about the income ? will it same as previous calculation method ? Do u even get my point ?

Will change it accordingly.Article already mentioned that.All we can see here is the clarity of economic data.

 

[janon]

u must be very old

Or just very well read. Or both.

 

[magudi]

Fekus new strategy now that ache din hasn't come and economy is going down by the day

 

[Skull and Bones]

Did the GDP increased by redefining the base year?

 

[Echo_419]

on the other hand,our ishaq dar sahab is still using 1999-2000 as base year.

Please refrain from typing oftopic shit

Fekus new strategy now that ache din hasn't come and economy is going down by the day

srsly don't troll so much man