India revises up 2013/14 GDP growth

Discussion in 'Economy & Infrastructure' started by Nicky G, Jan 30, 2015.

  1. Nicky G

    Nicky G Senior Member Senior Member

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    India revises up 2013/14 GDP growth to 6.9 percent

    The informal sector really needs to be brought in, not only will that increase our GDP, rate of growth but also revenue opportunities.

    Anyway, why did Cong not do this before LS elections to shore up their performance?

    More importantly, what will this mean for 2015-16 growth targets?
     
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  3. ezsasa

    ezsasa Senior Member Senior Member

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    This revision will add about 100-120 bln USD to GDP.

    To the point regarding Informal sector being added , while this is a brilliant idea where most of our economy is in informal sector.
    This revision of GDP Growth is based on MCA21 data which is based on chart of accounts rather than the old method on basing GDP growth based 2500 sample companies.
     
  4. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    I am no economist, but does anyone know how its done in other nations?
     
  5. ezsasa

    ezsasa Senior Member Senior Member

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    Oops!!! sorry it seems there is no change in the total economy of 1.8 trillion USD.
     
  6. ezsasa

    ezsasa Senior Member Senior Member

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    Check out the reuters article explaining this...
     
  7. karn

    karn Regular Member

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    GDP is hilariously easy to manipulate .
    South Africa was the Africa largest economy then suddenly .
    BBC News - Nigeria becomes Africa's biggest economy

    If you want to check if there is progress in a country check things like power , steel etc consumption .
    Suddenly the US economy had a large uptick last quarter .. But later it was revealed that it was mostly because of larger health care cost . By that logic if there is an epidemic the GDP of any country will rise several % points .
     
    Last edited: Jan 30, 2015
  8. Sambha ka Boss

    Sambha ka Boss Regular Member

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    Majority of countries revise their base years.
     
  9. Hari Sud

    Hari Sud Senior Member Senior Member

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    Still not understood the merits of GDP growth change.

    What if we left this calculation as is? I know Chinese manipulate their GDP data extensively. Is this change to be inline with other countries.

    Reuter article does not say anything. They are British national interest propagandist.
     
  10. ezsasa

    ezsasa Senior Member Senior Member

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    basically they have revised three things in the method this year :
    1) Revised the base year from 2005 to 2011, This allows the CSO to take into account new products which have come into market like LED TV which did not exist in indian market in 2005.
    2) Recalculate the GDP inputs based on MCA21 data, MCA21 is a provision enabled during chidambaram's time where companies are supposed to upload their accounts onto a govt site. earlier the basis for this data was based on economic data of around 2500 companies identified by RBI based on certain parameters. Now the same is being calculated based on 500000 companies data. which gives the GDP figure closer to the actual. The calculation of informal sector is based on tax collected now rather than based on goods traded.
    3) Our calculation method has been revised as per Global UN standards.

    There may be more changes but the above points are the one's i understood.

    Advantages of changing is that we will now be able to calculate the GDP closer to the actual number than before.I am hoping that next time govt releases the GDP data we might have some surprises.

    Hope this helps.
     
    Last edited: Jan 31, 2015
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  11. Hari Sud

    Hari Sud Senior Member Senior Member

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    Are we going in the right direction for calculating GDP and its annual growth?

    It just made a substantial difference in the calculation of annual GDP growth rate. It should not be used to slacken up effort to boost the GDP growth rate. It is good that we are now as close to world standard as possible.
     
  12. ezsasa

    ezsasa Senior Member Senior Member

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    Yes, it gives a accurate picture of our economy.
    Other than the rhetoric by paid media i go by statements i hear from eminent economists, just today there was interview with jagdish bhagwat on NDTV. He seems to be sure that country is going in the right direction. one thing that caught my eye was that he mentioned that Modi is not afraid of changing his opinion.

    He gave two instances first one being that the reason for india not voting in WTO vote first time around is because babus in ministry advised him against WTO, So we went against the entire world. Modi utilised the time to understand the issue and next time we voted for the WTO deal. considering how long it was struck, getting it done in 6 months working with desi babudom is not a bad deal.

    Second one was the aadhar, it was designed and implemented by Congis. BJP leadership it seems wanted to drop aadhar but modi took a call that we are going to continue with it.

    As for everything else "Be prepared for the worst,hope for the best"
     
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