India’s gross domestic product (GDP) for the July-September quarter (Q2) of the ongoing financial year 2022-23 slowed to 6.3 percent, as per provisional estimates released by National Statistical Office (NSO) . The GDP growth was dragged down mainly by the poor performance of the manufacturing and mining sectors. While the GDP had expanded by 8.4 percent in the corresponding quarter of 2021-22, it saw a growth of 13.5 percent in the preceding April-June quarter of 2022-23.

As per the government data, the gross value added (GVA) at basic price at constant terms during the September quarter rose 5.6 percent. The GVA at basic price at current prices
rose 16.2 percent in Q2 2022-23.

LEARNING FROM HOME/WITHOUT CLASSES/BASICS

GDP: Gross Domestic Product, a measure of economic activity in a country/ Level of output produced by the country. the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year.

                       Gross National Product (GNP) is a measurement of the overall production of persons or corporations native to a country, including those based abroad. GNP excludes domestic production by foreigners.

                        Net National Product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period. It is the equivalent of gross national product (GNP), the total value of a nation’s annual output, minus the amount of GNP required to purchase new goods to maintain existing stock, otherwise
known as depreciation.

NNP=  Gross National Product−Depreciation​

For example, if Country A produces $1 trillion worth of goods and $3
trillion worth of services in 2018, and the assets used to produce those goods and services are depreciated by $500 billion, using the formula above,

Country A’s NNP is:

NNP​=$1 trillion+$3 trillion−$0.5 trillion=$3.5 trillion​

The Gross Value Added(GVA) calculates the national income from the supply side. It does so by adding up all the value added across different sectors. According to the RBI,
the GVA of a sector is defined as the value of output minus the value of its intermediary inputs. This “value added” is shared among the primary factors of production, labour and capital.

The GDP and GVA are related by the following equation: GDP = (GVA) + (Taxes earned by the government) — (Subsidies provided by the government)

As such, if the taxes earned by the government are more than the subsidies it provides, the GDP will be higher than GVA. 

Difference between current and constant data

Data reported in current (or “nominal”) prices for each year are in the value of the currency for that particular year. For example, current price data shown for 2020 are based on 2020 prices. Other series show
data in “constant” or “real” terms. Constant series show the data for each year in the value of a particular base year.

Current series are influenced by the effect of price inflation. Constant series are used to measure the true growth of a series, i.e. adjusting for the
effects of price inflation. For example (using year one as the base year), suppose nominal Gross Domestic Product (GDP) rises from 100 billion to
110 billion, and inflation is about 4%. In real prices, the second year GDP
would be approximately 106 billion, reflecting its true growth of 6%

A new indicator called GDP deflator is derived by dividing nominal GDP by real GDP.
It is a measure of price changes in the economy.