[Answered] Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015.
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The Gross Domestic Product (GDP) is the market value of all final goods and services produced within an economy in a given period. The GDP data is calculated by National Statistical office (NSO).
GDP Calculation Before 2015
GDP Calculation After 2015
The earlier base year for calculation of GDP was 2004-05.
GDP was calculated at factor cost.
Index of Industrial Production (IIP) was used to measure manufacturing and trading activity.
In the older system, GDP was first estimated by using the IIP data and then updated using the ASI data (Annual Survey of Industries). ASI accounted only for those firms which were registered under the Factories Act.
The government moved to a new base year of 2011-12 for GDP calculation.
GDP is now calculated at Market Price.
The international practice of valuing industry-wise estimates as gross value added (GVA) at basic prices was adopted.
The government adopted MCA-21 database, which allows the firms/companies to electronically file their financial results.
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