New GDP estimates have been released by the Government. They are based on a revised national accounts series. Moreover, 2022–23 has been adopted as the new base year by the Statistics Ministry. Earlier series had 2011-12 base series.

What Updated Series Capture

The updated series anchored on methodological improvements and wider economic coverage. In addition, the new series aimed at capturing real economic activity more accurately across sectors. It also reflects changes in consumption patterns and production dynamics. Furthermore, the growing role of formal sector enterprises in India’s economy considered.

New GDP Estimates

Growth estimates revised upward as per new series

FY24 growth stood at 9.2 percent in previous series. New series pegged it  7.2 percent .

The FY25 growth number was 6.5 percent. New series  revised it to 7.1 percent.

Growth for the first half of the year also been revised.

Q1 Growth

Previous Estimate: 7.8%

Revised Estimate: 6.7%

Q2 Growth

Previous Estimate: 8.2%

Revised Estimate: 8.4%

FY26 growth is pegged at 7.6%. An improvement over the 7.1% growth achieved in the last fiscal.

LEARNING FROM HOME/ WITHOUT CLASSES/ BASICS

GROSS DOMESTIC PRODUCT

GDP = C + G +|+ (X-M]

where C= Consumption,

G = Government Spending,

I = Investment, X = Exports, M = Imports

GROSS DOMESTIC PRODUCT at factor cost = Net Value Addition + Depreciation

Nominal Gross Domestic Product calculated on the basis of current prices. While real GDP calculated on the base year prices 

The tertiary sector contributes the most to India’s economy. There are many areas in this sector like the service sector, real estate, hotels and restaurants, telecommunications etc. 

GROSS NATIONAL PRODUCT

GNP = GDP + Net Income from Abroad,

*Net Income from abroad includes net

remittances

NET DOMESTIC PRODUCT

NDP = Gross Domestic Product – Depreciation,

Depreciation also called Consumption

of Fixed Capital (CFC)

NET NATIONAL PRODUCT

NNP = GNP – Depreciation,

“NNP at factor cost also called National Income (NI)

3 methods used for calculating national income namely; Income method, expenditure method, and Product method.

The International Monetary Fund releases the World Economic Outlook Report.