Changes in GDP calculation - At glance

 

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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