Business
India's GDP for 2014-15 pegged at 7.4 percent
New Delhi, Feb 9
The government Monday said it
expects the annual gross domestic product (GDP) to grow at 7.4 percent
in the current fiscal under a new method for computing national
accounts, thereby resulting in the upward economic growth rate.
"Real
GDP at constant (2011-12) prices in the year 2014-15 is likely to
attain a level of Rs.106.57 lakh crore, as against the first revised
estimate of GDP for the year 2013-14 of Rs.99.21 lakh crore, released on
Jan 30, 2015," the central statistics office (CSO) said in its advance
estimates of national income 2014-15.
"The growth in GDP during
2014-15 is estimated at 7.4 percent as compared to the growth rate of
6.9 percent in 2013-14," it added.
The CSO, under the ministry of
statistics and programme implementation, had shifted base year from
2004-05 to 2011-12, and had come out with the new annual estimate of
national income and other macroeconomic aggregates on Jan 30, 2015.
Under
the new method, CSO measures GDP by market prices instead of factor
costs, to take into account gross value addition (GVA) in goods and
services and indirect taxes.
The base year of national accounts was last revised in January 2010.
The
CSO had earlier said that following international practice,
industry-wise estimates will be presented as gross value added (GVA) at
basic prices, while GDP at market prices will henceforth be referred as
GDP.
The CSO has also revised growth rate for the first half of
2014-15 at 7.4 percent, from 5.5 percent it had reported earlier under
the old method.
At constant prices of 2011-12, the CSO has revised the October-December gross domestic growth (GDP) rate at 7.5 percent.
While
the growth rate calculated under the new system for second quarter has
been revised to 8.2 percent, that for first quarter has been pegged at
6.5 percent.
The CSO said these estimates are based on the
anticipated level of agricultural production, index of industrial
production (IIP), monthly accounts of union government expenditure and
of state government expenditure.
The data furnished by CSO shows
that financial, real estate, professional services, trade, hotels,
transport, communication and services related to broadcasting, public
administration, defence, electricity, gas, water supply and other
utility services grew at the rate of over seven percent.
The
growth in agriculture, forestry and fishing has been estimated to be at
1.1 percent, mining and quarrying at 2.3 percent, construction at 4.5
percent and manufacturing at 6.8 percent.