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At 7.4% India is the World's Fastest Growing Big Economy; Overtaking China
Feb 13, 2015

The Advance Estimates of National Income, 2014-15, released by the Ministry of Statistics and Programme Implementaton, said real 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.

Salient Features

  • Real or inflation-adjusted economic growth rate for October-December (Q3) 2014 was at 7.5% making India the fastest growing major economy in the world, overtaking China’s 7.3% growth.

  • According to the Government’s forecast Indian economy will likely grow at 7.4% in 2014-15, under a new formula that covers a raft of activities from farm-level livestock to mega infrastructure projects and trendy smart-phone sales.

  • According to the new method, real growth rate of India’s Gross Domestic Product (GDP)—the measure of the total value of goods and services produced in the country—was 6.9% in 2013-14, higher than the earlier estimate on the basis of old series was 4.7% after factoring in new data on output and spending of under-represented items.

  • The growth rate for 2012-13 has also been revised upwards to 5.1% according to the new series which uses 2011-12 as the new base year from 4.5% estimated using 2004-05 as the base year.

  • The base year of the national accounts is changed periodically to factor in structural changes in the economy and present a more realistic picture of macroeconomic aggregates.

  • The new series, which has been in the works for a couple of years, includes data on unorganised manufacturing and services and income from Public Private Partnership (PPP) projects, among others.

  • The gross value added (GVA) at basic prices at  constant (2011-12) prices in the third quarter was estimated at Rs. 24.97 lakh crore, as against Rs. 23.24lakh  crore in Q3 of 2013-14.

Growth Rates Predicted in Various Sectors

  • Agriculture, Forestry and Fishing (-0.4 percent)

  • Mining and Quarrying (2.9 percent)

  • Manufacturing (4.2 percent)

  • Electricity, Gas and Water Supply and other Utility Services (10.1 percent)

  • Construction (1.7 percent)

  • Ttrade, Hotels, Transport, Communication and Services related to broadcasting (7.2 percent)

  • Financial, Real Estate and  Professional Services (15.9 percent)

  • Public Administration, Defence  and Other services (20 percent).

  • Per Capita Income: The per capita income in real terms (at 2011-12 prices) during 2014-15 is likely to attain a level of Rs. 74,193 as compared to Rs. 69,959 for the year 2013-14. The growth rate in per capita income is estimated at 6.1 percent during 2014-15, as against the previous year’s estimate of 5.4 percent.

The Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation had revised its base year to 2011-12 and released revised annual estimate of National Income and other macroeconomic aggregates on January 30.


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