MoSPI Releases Provisional GDP Estimates for FY25
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Real GDP Growth Rate: BEFORE the previous financial year saw a high growth rate of 9.2 percent. NOW the provisional estimates for FY 2024-25 show a moderation to 6.5 percent.
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Headline Growth Metric: BEFORE 2015, the government used GDP at factor cost as the primary headline metric for economic growth. NOW, the NSO uses GDP at market prices to measure economic growth, factoring in indirect taxes and subsidies.
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Base Year for Calculation: BEFORE 2015, national income estimates were calculated using 2004-05 as the constant base year. NOW, estimates are calculated using 2011-12 as the base year to account for structural changes in the modern economy.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding national income accounting in India? 1. Nominal GDP is calculated using constant base year prices to remove the effect of inflation. 2. The National Statistical Office (NSO) is responsible for releasing the estimates of National Income in India.