INDIA GDP 2014-15

Indian economy grows at 7.3% in 2014-15

In News INDIA GDP

:

• The Indian economy grew at 7.3% in 2014-15 due to improvement in the performance of both services as well as manufacturing sectors.
• According to the data release by the Central Statistics Office (CSO) the economic growth was 6.9% in 2013-14 as per the new series of national accounts with base year of 2011-12.
• The Gross Value Added (GVA), a new concept introduced by CSO to measure the economic activity, rose by 7.2 per cent in 2014-15 compared 6.6 per cent in the previous fiscal.

What is GVA?

• Gross value added (GVA) is a measure of the value of goods and services produced in an area, industry or sector of an economy. In national accounts GVA is output minus intermediate consumption.
• Relationship to gross domestic product: GVA is linked as a measurement to gross domestic product (GDP), as both are measures of output.
  • GVA + taxes on products – subsidies on products = GDP

Base year change:

• In January 2015 govt changed the base year for calculating national accounts to 2011-12 from 2004-05
• This change is a part of routine annual revision where changes are made only on the basis of updated data becoming available.
• The base year was last revised in January, 2010.
• Before change in base year the GDP growth in 2014-15 was 4.7%. But after change in base year it was 6.9%.