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Indian GDP poised to grow by 7.4 percent in the current year

10 Feb 2015 Evaluate

The Central Statistics Office (CSO) has released advanced Gross Domestic Product (GDP) estimate, according to which the Indian economy is poised to grow by 7.4 percent in the current year, bettering 6.9% recorded last year. According to the latest revised GDP numbers, based on the new gross value added (GVA) methodology, Indian economy grew at a much faster pace of 6.9 percent in fiscal year 2014, compared with 4.7 per cent using the old method. In the third quarter ending December, the economy grew at 7.5 per cent, lesser than the second quarter growth of 8.2 percent, as growth in agricultural sector contracted by 0.4 percent as against a growth of 3.8 percent, mining and quarrying sector too expanded at a slower rate of 2.9 percent, while the manufacturing too slowed to 4.2 percent as against a growth of 5.9 percent in the same quarter last fiscal.

Real GDP or GDP at constant (2011-12) prices in the year 2014-15 is likely to attain a level of Rs 106.57 lakh crore, as against the First Revised Estimate of GDP for the year 2013-14 of Rs 99.21 lakh crore, released on 30th January 2015. GDP at current prices in 2014-15 is likely to attain a level of Rs 126.54 lakh crore, up 11.5 percent from Rs 113.45 lakh crore in 2013-14.

Sector wise, the estimated growth in manufacturing, mining and quarrying, electricity, gas and water supply, and construction is estimated to be 6.8 percent, 2.3 percent, 9.6 percent and 4.5 percent, respectively during 2014-15 as compared to growth of 5.3 percent, 5.4 percent, 4.8 percent and 2.5 percent, respectively, in 2013-14.

As far as per capita income is concerned, the per capita net national income during 2014-15 is estimated to be Rs 88,538, up 10.1 percent as compared to Rs 80,388 during 2013-14. At constant prices, the per capita income (at 2011-12 prices) during 2014-15 is likely to attain a level of Rs 74,193 as compared to Rs 69,959 in 2013-14.

As per the new estimation method the statistics office has recast the way in which it measures data in line with international norms, which takes market prices into account rather than the factor cost that was being considered previously. The base year was also changed to 2011-12 from 2004-05.

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