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Under the UPA regime, the Indian economy had not grown so rapidly, as announced earlier, according to a new series of national accounts data released on November 28.
NITI Aayog and the Central Bureau of Statistics (CSO) released the "latest round" of India's gross domestic product (GDP) data from 2005 to 2006, according to a new methodology, which has reduced a few percentage points previous growth estimates in several years.
The series (2011-12) is far superior and has brought important methodological improvements, "said Rajiv Kumar, vice chair of the NITI Aayog government's policy think tank, adding that the government had consulted experts such as the member of the monetary policy committee Chetan Ghate, former chief statistician, TCA Anant, among others
It was previously estimated that India had recorded a 10% growth of 10.3% in 2010 According to the new estimates, it has now been revised to 8.5%.
Similarly, GDP growth rates, corrected or corrected for inflation, by 9.3%, 9% and 9% respectively. , 3% and 9.8% in 2005-06, 2006-07 and 2007-08, were revised downward to 9.9%, 8.1% and 7.7%
In 2008-2009, growth has been reduced to 3.9% due to the global financial crisis, but new estimates show that the growth rate has underestimated and that the economy grew by 3.1%.
The previous series was aligned with a new methodology launched by the government in 2015, modifying the base year in 2011-12.
The new method adopts a gross value added (GVA) approach compared to a volume-based calculation.
Previously, the index of industrial production (IPI) was the main measure of measurement of manufacturing and commercial activity. . This limited the calculation to only the number of units produced and did not distinguish between a sedan and an entry-level car.
The organized industrial activity was based on the IIP and was updated two years later from data from the Annual Survey of Industries (ASI), which captures the value of goods to the output of the factory only for companies registered under the Factories Act.
At present, the MCA 21 of the Department of Corporate Affairs is recording a complete compendium of balance sheet data of about 5,000,000 companies.
The base year of the national accounts is the year chosen to allow comparisons from one year to the next. It is periodically modified to reflect structural changes in the economy and to provide a more realistic picture of macroeconomic aggregates. The new series changes the base from 2011 to 2005 from 2004 to 2005.
The base year is important in the calculation of GDP as factors such as purchasing power and allows to calculate growth estimates. adjusted for inflation.
Labor income is calculated differently. in the new method, where different weights are badigned depending on whether one is a homeowner, hired professional or badistant using a method called "actual labor input".
Similarly, value added in agriculture, in the new method, aims to capture activity beyond holdings such as livestock data.
It is important to note that the new series uses the 2011-2012 survey conducted by the National Sample Survey Organization to calculate commercial income, compared to the 1999 survey data used in the previous series.
The new series shows that the value added in trade was significantly lower than that projected in the old series, which used extrapolated data from a survey conducted in 1999.
Government officials involved in the compilation of new data, the previous series did not take into account the added value of financial services. It covered only a few mutual funds (mainly UTIs) and estimates for non-bank non-government finance companies compiled by RBI, apart from banking and insurance activities.
In the new series, financial sector coverage has been expanded to include securities brokers, stock exchanges, badet management companies, mutual funds and pension funds, as well as regulatory bodies, SEBI, PFRDA and IRDA.
This likely explains the sharp drop in the growth rate to 3.1% in 2009 – 10, reflecting a deeper impact of the global financial crisis on the Indian economy of 2008 than previously thought .
In January 2015, the CSO published a new set of national accounts, revising the base year from 2004-05 to 2011-12. . In the new series, GDP at factor cost has been replaced by gross value added (GVA) at basic prices, in line with the international standard.
"The method of preparation of the series of estimates for the years 2004-05 to 2010-11 is largely identical to the methodology followed in the new base (2011-12). the limited availability of data, either by the splicing method or by the ratios observed in the 2011-12 base year estimates, were applied, "said the CSO in a statement.
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