1) Change in base year - from
2004-05 to 2011-12
Ø Thus
included recycling and trade activities by manufacturing industry in new GDP
2) Change of Definition :
i.
New GDP is estimated at market price i.e. Gross Value
Added (GVA)
Ø Thus
includes indirect tax and excludes subsidies
ii.
Earlier, GDP was estimated at factor cost
Ø Thus,
excluded indirect tax and included subsidies
3) Gross Value Added (GVA) :
i.
Production taxes are included
Ø production
taxes are imposed even if products are not produced eg. property owned by a
factory
ii.
Production subsidies are excluded
Ø production
subsidies includes interest subsidies
4) In new
calculation, enterprise approach is followed
instead of establishment approach, which was followed in old GDP formula.
Ø In enterprise
approach, activities at HQ is taken into account eg. marketing and sales
promotion whereas it was not taken into account in establishment approach.
5) Changes in GDP figures :
F.Y
|
Old GDP
|
New GDP
|
2012-13
|
4.5%
|
5.1%
|
2013-14
|
4.7%
|
6.9%
|
6) Share of manufacturing rose from
12.9% (old) to 18% (new) in 2013-14.
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