Business
Economic growth 2013-14 revised to 6.9 percent by base year change
New Delhi, Jan 30
The Indian government Friday
revised the base year for computing national accounts resulting in the
upward economic growth rate of 6.9 percent for 2013-14, according to an
official statement.
The GDP estimates under the old method was 4.7 percent.
The
ministry of statistics and programme implementation has released the
new series of national accounts, revising the base year from 2004-05 to
2011-12.
The base year of national accounts was last revised in January 2010.
According
to the statement, base year revisions differ from annual revisions in
national accounts primarily because of nature of changes.
"In
annual revisions, changes are made only on the basis of updated data
becoming available without making any changes in the conceptual
framework or using any new data source, to ensure strict comparison over
years," it said.
"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."
"Further, statistical changes like revisions in
the methodology of compilation, adoption of latest classification
systems, and, inclusion of new and recent data sources are also made.
Changes are also made in the presentation of estimates to improve ease
of understanding for analysis and facilitate international
comparability," the government said.
As a result, the growth rate
for 2012-13 has been changed to 5.1 percent under revised norms as
against 4.5 percent estimated under the old values.
According to
the statement, following the international practice, industry-wise
estimates will be presented as gross value added (GVA) as basic prices,
while GDP at market prices will henceforth be referred as GDP.