Lok Sabha Question No. 2812 (UNSTARRED), answered on 2019-07-10
Subject: GDP Calculation Methodology
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: K. Subbarayan, Deepak Baij, Venkatesh Netha Borlakunta, M. Selvaraj, Gopal Chinayya Shetty, Ravneet Singh, S. Venkatesan

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA UNSTARRED QUESTION NO. 2812 TO BE ANSWERED 10.07.2019

## GDP CALCULATION METHODOLOGY

## 2812. SHRI SUBBARAYAN K.:

SHRI DEEPAK BAIJ:

SHRI VENKATESH NETHA BORLAKUNTA:

SHRI M. SELVARAJ:

SHRI GOPAL CHINNAYA SHETTY:

SHRI RAVNEET SINGH BITTU:

SHRI S. VENKATESAN:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a) whether the Government has over stated the GDP figures for the period from 2011-12 to 2016-17 as per the views expressed by some experts;
- (b)  if  so,  whether  GDP  rate  has  been  over-estimated  by  about  2.5 percentage points per year post 2011;
- (c) if so, the details and the reaction of the Government thereto;
- (d) the real GDP figures for the period ranging from 2011-12 to 2016-
- 17 and the figures as stated by the experts and the details of the rise  and  fall  experienced  by  various  sectors  in  the  country  during the said period; and
- (e) whether the Government proposes to revisit the methodology for GDP estimation  by  an  independent  task  force  comprising  national and international experts and if so, the details thereof?

## ANSWER

MINISTER  OF  STATE (INDEPENDENT  CHARGE) OF  THE  MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER  OF  STATE (INDEPENDENT  CHARGE) OF  THE  MINISTRY OF PLANNING (RAO INDERJIT SINGH)

- (a)  to  (e):  The  methodology  of  Gross  Domestic  Product  (GDP) estimation  followed  by  this  Ministry  is  in  line  with  the  System  of

National Account (SNA) 2008, the international standard in compilation of National Accounts developed by the United Nations. The  methodology  and  the  data  sources  are  reviewed  by  experts from  academia,  various  stakeholders  and  expert  committee  like Advisory Committee on National Accounts Statistics (ACNAS), comprising of members from Reserve Bank of India (RBI), National  Statistical  Commission  (NSC),  Ministry  of  Finance,  State Governments, academia etc.  The GDP estimates produced by this Ministry  is  an  accurate  representation  of  the  economy's  growth based on the data and methodology adopted. GDP  and  Sector-wise  GVA  at  Constant  (2011-12)  prices  for 2011-12 to 2016-17 and corresponding Growth rates are available on the  website  of  this  Ministry  and  the  relevant  extracts  are  at Annexure.

- ******

Gross Domestic Product (GDP) and Gross Value Added (GVA) by economic activity at constant (2011-12) prices

| S.No.   |                                                                      | (in Rs. crore)   | (in Rs. crore)   | (in Rs. crore)   | (in Rs. crore)   | (in Rs. crore)   | (in Rs. crore)   |         |         | Growth Rate (In   | %)      |         |
|---------|----------------------------------------------------------------------|------------------|------------------|------------------|------------------|------------------|------------------|---------|---------|-------------------|---------|---------|
|         | Item                                                                 | 2011-12          | 2012-13          | 2013-14          | 2014-15          | 2015-16          | 2016-17          | 2012-13 | 2013-14 | 2014-15           | 2015-16 | 2016-17 |
| 1.      | Agriculture, forestry and fishing                                    | 15,01,947        | 15,24,288        | 16,09,198        | 16,05,715        | 16,16,146        | 17,17,467        | 1.5     | 5.6     | -0.2              | 0.6     | 6.3     |
| 2.      | Mining and quarrying                                                 | 2,61,035         | 2,62,609         | 2,63,107         | 2,88,685         | 3,17,974         | 3,48,089         | 0.6     | 0.2     | 9.7               | 10.1    | 9.5     |
| 3.      | Manufacturing                                                        | 14,09,986        | 14,86,873        | 15,60,709        | 16,83,938        | 19,03,850        | 20,55,043        | 5.5     | 5.0     | 7.9               | 13.1    | 7.9     |
| 4.      | Electricity, gas, water supply & other utility services              | 1,86,668         | 1,91,635         | 1,99,601         | 2,14,047         | 2,24,158         | 2,46,491         | 2.7     | 4.2     | 7.2               | 4.7     | 10.0    |
| 5.      | Construction                                                         | 7,77,335         | 7,80,050         | 8,00,771         | 8,35,229         | 8,65,335         | 9,17,754         | 0.3     | 2.7     | 4.3               | 3.6     | 6.1     |
| 6.      | Trade, repair, hotels and restaurants                                | 8,83,582         | 9,81,620         | 10,34,506        | 11,35,841        | 12,61,426        | 13,89,176        | 11.1    | 5.4     | 9.8               | 11.1    | 10.1    |
| 7.      | Transport, storage, communication & services related to broadcasting | 5,29,534         | 5,69,523         | 6,17,556         | 6,71,848         | 7,31,399         | 7,56,239         | 7.6     | 8.4     | 8.8               | 8.9     | 3.4     |
| 8.      | Financial services                                                   | 4,80,226         | 5,29,792         | 5,77,914         | 6,27,255         | 6,72,788         | 6,97,103         | 10.3    | 9.1     | 8.5               | 7.3     | 3.6     |
| 9.      | Real estate, ownership of dwelling & professional services           | 10,50,651        | 11,50,239        | 12,89,493        | 14,46,460        | 16,21,999        | 17,97,341        | 9.5     | 12.1    | 12.2              | 12.1    | 10.8    |
| 10.     | Public administration and defence                                    | 4,91,155         | 5,01,383         | 5,10,046         | 5,43,853         | 5,65,106         | 6,13,896         | 2.1     | 1.7     | 6.6               | 3.9     | 8.6     |
| 11.     | Other services                                                       | 5,34,827         | 5,68,262         | 6,00,748         | 6,59,262         | 7,11,691         | 7,80,373         | 6.3     | 5.7     | 9.7               | 8.0     | 9.7     |
| 12.     | TOTAL GVA                                                            | 81,06,946        | 85,46,275        | 90,63,649        | 97,12,133        | 1,04,91,870      | 1,13,18,972      | 5.4     | 6.1     | 7.2               | 8.0     | 7.9     |
| 13      | GDP                                                                  | 87,36,329        | 92,13,017        | 98,01,370        | 1,05,27,674      | 1,13,69,493      | 1,22,98,327      | 5.5     | 6.4     | 7.4               | 8.0     | 8.2     |