New Methods of Computing GDP
Central Statistical Organisation, introduced changes in computation of Gross Domestic Product in 2015.
Accordingly the GDP share as per 2011-12 series for Agriculture is 19%, for Industry 32% and for Services = 49%.
According to changed criteria, the headline growth is to be measured by GDP at constant market prices (to be
referred as GDP), which is an international practice. Earlier it was measured in terms of GDP at factor cost.
Sector-wise estimates of Gross Value Added (GVA) shall beat basic prices instead of factor cost.
GVA is an economic measurement used to calculate the productivity of an economy. The value added formula is
the difference between total economic output and intermediate consumption goods. The relationship between GVA
at factor cost, GVA at basic prices and GDP (at market prices) is given below:
GVA at basic prices = CE + OS / MI + CFC + production taxes less production subsidies.
GVA at factor cost = GVA at basic prices — production tax less production subsidies
Gross Domestic Product (GDP) = Summation GVA at basic prices — product tax — product subsidies
(CE = Employee compensation, OS = Operating surplus, MI = Mixed income, CFC = Consumption of fixed capital).
FORMULAE -
Ministry of Statistics & Program Implementation revised the base year from 2004-05 to 2011-12 for national
accounts and introduced the following formulae:
1.Gross value added (GVA) at basic prices = CE + OS/MI + CFC + Production taxes less Production subsidies
2.GVA at factor cost (earlier referred to as GDP at factor cost) = GVA at basic prices plus Production taxes less Production subsidies
3.GDP = GVA at basic prices + Product taxes - product subsidies
4.NDP/NNI = GDP/GNI - CFC
5.GNI = GDP + Net primary income from ROW
6. Primary Incomes = CE + Property and Entrepreneurial Income
7.NNDI =NNI + other current transfers from ROW, net (Receipts less payments)
8.GNDI = NNDI + CFC = GNI + other current transfers from ROW, net (Receipts less payments)
9.Gross Capital Formation= Gross Savings+ Net Capital Inflow from ROW
10.GCF = GFCF + CIS + Valuables + Errors and Omissions
11.Gross Disposable Income of Govt. = GFCE + Gross Saving of GG
12. Gross Disposable Income of Households = GNDI GDI of Govt. Gross Savings of All Corporations
Central Statistical Organisation, introduced changes in computation of Gross Domestic Product in 2015.
Accordingly the GDP share as per 2011-12 series for Agriculture is 19%, for Industry 32% and for Services = 49%.
According to changed criteria, the headline growth is to be measured by GDP at constant market prices (to be
referred as GDP), which is an international practice. Earlier it was measured in terms of GDP at factor cost.
Sector-wise estimates of Gross Value Added (GVA) shall beat basic prices instead of factor cost.
GVA is an economic measurement used to calculate the productivity of an economy. The value added formula is
the difference between total economic output and intermediate consumption goods. The relationship between GVA
at factor cost, GVA at basic prices and GDP (at market prices) is given below:
GVA at basic prices = CE + OS / MI + CFC + production taxes less production subsidies.
GVA at factor cost = GVA at basic prices — production tax less production subsidies
Gross Domestic Product (GDP) = Summation GVA at basic prices — product tax — product subsidies
(CE = Employee compensation, OS = Operating surplus, MI = Mixed income, CFC = Consumption of fixed capital).
FORMULAE -
Ministry of Statistics & Program Implementation revised the base year from 2004-05 to 2011-12 for national
accounts and introduced the following formulae:
1.Gross value added (GVA) at basic prices = CE + OS/MI + CFC + Production taxes less Production subsidies
2.GVA at factor cost (earlier referred to as GDP at factor cost) = GVA at basic prices plus Production taxes less Production subsidies
3.GDP = GVA at basic prices + Product taxes - product subsidies
4.NDP/NNI = GDP/GNI - CFC
5.GNI = GDP + Net primary income from ROW
6. Primary Incomes = CE + Property and Entrepreneurial Income
7.NNDI =NNI + other current transfers from ROW, net (Receipts less payments)
8.GNDI = NNDI + CFC = GNI + other current transfers from ROW, net (Receipts less payments)
9.Gross Capital Formation= Gross Savings+ Net Capital Inflow from ROW
10.GCF = GFCF + CIS + Valuables + Errors and Omissions
11.Gross Disposable Income of Govt. = GFCE + Gross Saving of GG
12. Gross Disposable Income of Households = GNDI GDI of Govt. Gross Savings of All Corporations
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