GDP Growth Revised
Down to 7*2% for FY ’15
According to the official da: India’s economy grew 7-2 per cent: 2014-15, a shade lower than an earl:-
estimate of 7-3 per cent. Among various segments, agriculture and manufacturing growth was revised down for FY15. The official data also showed that in 2013-14, GDP grew at 6.6 per cent, significantly lower than the earlier calculation of 6-9 per cent. This means that growth in the first year of the Narendra Modi government was much higher than what was seen during the United Progressive Alliance government in 2013-14.
GDP GROWTH (%y-°-y>
s Earlier estimates * Revised estimates
Sunil Kumar Sinha, Principal Economist, India Ratings & Research, said, “Lower GDP growth in FY14 means lower base. Yet, the revised GDP for FY15 has come down marginally instead of going up. In a nutshell, the data released by the CSO (Central Statistics Office) suggest that economy in the past two financial years grew slower than it was believed earlier and even though GDP growth may have bottomed out, the path to recovery is going to be slow and painful.” The growth rate for 2012-13 was also revised to 5-6 per cent, compared with 5-1 per cent earlier.
Gross Value Added (GVA) has also been revised on almost similar lines. According to new data, GVA for 2014-15 now grew by 7-1 per cent against previous estimates of 7-2 per cent. Similarly, GVA for 2013-14 rose by 6-3 per cent, lower than earlier calculation of 6-9 per cent.
The 2014-15 GVA estimate was revised downwards as agriculture contracted 0.2 per cent against the previous estimates of 0-2 per cent growth. Similarly, manufacturing was shown growing at 5-5 per cent against the earlier calculation of 7.1 per cent.
The size of the economy has now been projected at ? 124-9 lath crore
against earlier estimate of ? 1-25 lakh crore for 2014-15. Similarly, the economy size stood at ? 112-7 lakh crore for 2013-14 against earlier calculation of ? 113-4 lakh crore. Per capita income stood at ? 86,879 in 2014-15, lower than the earlier calculation of ? 87,748.
RBI Governor Dr. Raghuram