{"id":71350,"date":"2020-12-01T11:53:14","date_gmt":"2020-12-01T06:23:14","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=71350"},"modified":"2020-12-01T11:53:14","modified_gmt":"2020-12-01T06:23:14","slug":"changes-brought-in-gdp-calculations-in-2015","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/changes-brought-in-gdp-calculations-in-2015\/","title":{"rendered":"Changes brought in GDP calculations in 2015"},"content":{"rendered":"<p><span class=\"TextRun BCX0 SCXW175032639\" lang=\"EN\" xml:lang=\"EN\" data-contrast=\"auto\"><span class=\"NormalTextRun BCX0 SCXW175032639\"><strong>What is the<\/strong> <strong>New GDP Methodology in India?<\/strong><\/span><\/span><\/p>\n<p><span data-contrast=\"none\">In 2015\u00a0<\/span><b><span data-contrast=\"none\">C<\/span><\/b><b><span data-contrast=\"none\">entral Statistics Office (CSO)<\/span><\/b><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-contrast=\"none\">introduced few changes in the GDP calculation<\/span><b><span data-contrast=\"none\">.\u00a0<\/span><\/b><span data-contrast=\"none\">They are:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0ab\" data-font=\"Wingdings\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Change of base year from 2004-2005 to 2011-2012<\/span><\/b><br \/>\n<span data-contrast=\"auto\">National Statistical Commission advised to revise the base year of all economic indices every five years. Based on that CSO changed the Base year<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"none\">Recently\u00a0<\/span><span data-contrast=\"none\">The\u00a0<\/span><b><span data-contrast=\"none\">Ministry of Statistics and\u00a0<\/span><\/b><b><span data-contrast=\"none\">Programme<\/span><\/b><b><span data-contrast=\"none\">\u00a0Implementation (MOSPI)<\/span><\/b><span data-contrast=\"none\">\u00a0is considering changing of\u00a0<\/span><b><span data-contrast=\"none\">base year<\/span><\/b><span data-contrast=\"none\">\u00a0for GDP calculation from\u00a0<\/span><b><span data-contrast=\"none\">2011-12 to 2017-18.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0ab\" data-font=\"Wingdings\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Replacing Factor Cost with Market Prices<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"auto\">CSO will\u00a0<\/span><b><span data-contrast=\"auto\">measure GDP by the gross value added (GVA) method\u00a0<\/span><\/b><span data-contrast=\"auto\">\u2013 a way of\u00a0<\/span><b><span data-contrast=\"auto\">calculating GDP at basic prices instead of at factor cost<\/span><\/b><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"6\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"2\"><span data-contrast=\"auto\">The industry-wise estimates will be presented as gross value added (GVA) at basic prices while\u00a0<\/span><b><span data-contrast=\"auto\">GDP at market prices will be referred to simply as GDP<\/span><\/b><b><span data-contrast=\"auto\">\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">This new method was\u00a0<\/span><b><span data-contrast=\"auto\">recommended by the United Nations System of National Accounts\u00a0<\/span><\/b><span data-contrast=\"auto\">in 2008 for reasons like\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"2\"><span data-contrast=\"auto\">This method was followed as\u00a0<\/span><span data-contrast=\"none\">international practice<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"auto\">This\u00a0<\/span><span data-contrast=\"auto\">will make India\u2019s GDP growth numbers comparable with that of developed nations<\/span><span data-contrast=\"auto\">\u00a0in future<\/span><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li data-leveltext=\"\uf0ab\" data-font=\"Wingdings\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Broadening of data pool:<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"none\">Previous data was sampled from Annual Survey of Industries (ASI), which comprised of about two lakh factories. But the\u00a0<\/span><b><span data-contrast=\"none\">new database draws\u00a0<\/span><\/b><b><span data-contrast=\"none\">data\u00a0<\/span><\/b><b><span data-contrast=\"none\">from\u00a0<\/span><\/b><b><span data-contrast=\"none\">the\u00a0<\/span><\/b><b><span data-contrast=\"none\">Ministry of Corporate Affairs (MCA21)<\/span><\/b><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-contrast=\"none\">where more than five lakh odd companies registered<\/span><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"2\"><span data-contrast=\"none\">In simple terms w<\/span><span data-contrast=\"none\">hile the earlier data gave only a factory-level picture, the new data looks at the enterprise level.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"2\"><b><span data-contrast=\"auto\">Improved coverage of financial corporations\u00a0<\/span><\/b><span data-contrast=\"auto\">by including stock brokers, stock exchanges, asset management companies, mutual funds and pension funds, as well as the\u00a0<\/span><b><span data-contrast=\"auto\">regulatory bodies<\/span><\/b><span data-contrast=\"auto\">, SEBI, PFRDA and IRDA.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0ab\" data-font=\"Wingdings\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Changes in calculation of agricultural income:<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"auto\">Earlier data only included value added in farm produce but the new data includes\u00a0<\/span><span data-contrast=\"auto\">value addition in Livestock as well.<\/span><br \/>\n<span data-contrast=\"auto\">For ex. Value added to the by-product of Meat like head, skin legs etc.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span class=\"EOP BCX0 SCXW175032639\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the New GDP Methodology in India? In 2015\u00a0Central Statistics Office (CSO)\u00a0introduced few changes in the GDP calculation.\u00a0They are:\u00a0 Change of base year from 2004-2005 to 2011-2012 National Statistical Commission advised to revise the base year of all economic indices every five years. Based on that CSO changed the Base year\u00a0 Recently\u00a0The\u00a0Ministry of Statistics&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/changes-brought-in-gdp-calculations-in-2015\/\">Continue reading <span class=\"screen-reader-text\">Changes brought in GDP calculations in 2015<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-71350","post","type-post","status-publish","format-standard","hentry","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":39,"cached_at":"","cached_date":1698387074},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=71350"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/71350\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=71350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=71350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=71350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}