Govt releases GDP back series; slashes UPA economic growth rate

Govt releases GDP back series; slashes UPA economic growth rate

Agency News

New Delhi, Nov 28 : As the 2019 general election are coming, the Government on Wednesday slashed down the country’s economic growth rate, calculated during the UPA regime, and said the gross domestic product (GDP) grew by 8.5 per cent in the financial year 2010-11 and not by 10.3 per cent.

The government has made few changes in the GDP calculation process in which it made 2011-12 as the base year rather than 2004-05, Niti Aayog vice-chairman Rajiv Kumar and Chief Statistician of India Pravin Shrivastava told a press conference here.

Mr Kumar said there was no confusion about the calculations made on the basis of the base year and current basis.

He said during the year 2011-12, some changes have been made in the calculation method which has an impact on primary and other sectors. In the old base year, customers were considered as basis for the telecom sector whereas in the new calculation, the minute used by consumers were taken as the basis.

The two said in 2005-06 and 2006-07, the GDP grew by 7.9 per cent and 8.1 per cent respectively instead of 9.3 per cent – which was calculated earlier.

According to the new method, the GDP in 2007-08 was 7.7 per cent whereas the UPA regime had calculated it at 9.8 per cent. . In the year 2011-12, the GDP growth rate on the old base was 6.6 per cent, which has come down to 5.2 per cent on the basis of the new base year.

They said, “After introduction of the new series of National Accounts (Base 2011-12), back-series estimates of National Accounts Statistics (NAS) are compiled and released for the years preceding the new base year for completeness and comparability with old base data sets. The present release gives a snapshot of domestic product, capital formation (at industry/item level) and other macro-economic aggregates till the year 2004- 05, as per the new series of NAS with base year 2011-12.”(UNI)