The base year was last revised in January, 2010
The Modi Government, on Friday, sharply revised India’s 2013-14 GDP
growth estimate to 6.9 per cent from 4.7 per cent. The 2012-13 growth
estimate was revised to 5.1 per cent from 4.5 per cent.
Former Finance Minister and Congress leader P. Chidambaram said that the
data released showed that the 10 years of the UPA government recorded
the highest decadal growth since Independence. “The data released today
and the other economic indicators conclusively establish that the UPA
government succeeded in substantial measure on fiscal consolidation,
containing the current account deficit, moderating inflation and putting
the economy back on the growth path… It should put an end, once and for
all time, to the misconceived charge that the UPA government had
mismanaged the economy.”
GDP data for a fiscal undergoes three rounds of revisions; the process
takes three years. The Central Statistics Office (CSO) releases the
second Revised Estimate for a financial year ending in March on the
subsequent January 30.
The estimates released on Friday also follow a change in the base year
for calculating national accounts to 2011-12 from 2004-05 in addition to
the routine annual revision — where changes are made only on the basis
of updated data becoming available.
The base year was last revised in January, 2010.
In case of base year revisions, apart from a shift in the reference year
for measuring the real growth, conceptual changes, as recommended by
the international guidelines, are incorporated, the official release
said.
The changes have reduced the gap between the way India calculates GDP
and the methodology used by the International Monetary Fund.
“The direction and quantum of revisions show two things—growth delivered
by the Manmohan Singh Government was stronger than estimated earlier
and the fiscal consolidation was tighter,” Saumitra Chaudhuri, Member of
the Economic Advisory Council to former Prime Minister Dr. Manmohan
Singh, told The Hindu.
Manufacturing sector
The jobs-creating manufacturing sector’s growth estimate for 2013-14 was revised to 6.2 per cent from minus 0.7 per cent and for 2012-13 was revised to 5.3 per cent from 1.1 per cent.
The jobs-creating manufacturing sector’s growth estimate for 2013-14 was revised to 6.2 per cent from minus 0.7 per cent and for 2012-13 was revised to 5.3 per cent from 1.1 per cent.
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