India’s GDP up 6.9% in 2013-14 under new series

The India's economy grew at a faster pace of 6.9 per cent in 2013-14, according to a new series of gross domestic product (GDP) data announced on Friday, against the 4.7 per cent estimated earlier under the earlier series.

The latest series, with a base year of 2011-12, broadens the coverage of computed income across segments across farm, corporate and unorganised sectors.

The base year of national income estimates was last revised to 2004-05 in January 2010.

Moreover, GDP estimates will no longer be based on factor cost and instead, industry-wise estimates will be presented as Gross Value Added (GVA) at basic prices, while 'GDP at market prices' will henceforth be referred to as GDP, as is the practice internationally, an official release said.

Estimates of GVA at factor cost (earlier called GDP at factor cost) can be compiled by using the estimates of GVA at basic prices and production taxes less subsidies.

As per the new series, real GDP or GDP at constant (2011-12) prices stood at Rs92.8 lakh crore and Rs99.2 lakh crore, respectively, for the years 2012-13 and 2013-14, showing growth of 5.1 per cent during 2012-13, and 6.9 per cent during 2013-14.

Nominal GDP growth for 2012-13 and 2013-14 is now pegged at 13.1 per cent and 13.6 per cent, respectively.

Industry-wise analysis shows that nominal GVA at base prices increased by 13.2 per cent during 2013-14, against 12.9 per cent during 2012-13. In terms of real GVA, ie, GVA at constant (2011-12) basic prices, there has been a growth of 6.6 per cent in 2013-14, as against growth of 4.9 per cent in 2012-13.
 
The growth in GVA during 2013-14 has been higher than that in 2012-13 due to higher growth in 'trade & repair services' (14.3 per cent), 'communication and services related to broadcasting' (13.4 per cent), 'other services' (10.7 per cent), 'agriculture, forestry and fishing' (3.7 per cent), 'construction' (2.5 per cent) and 'public administration & defence' (4.9 per cent).

Gross domestic saving during 2013-14 is estimated at Rs34.8 lakh crore, or 30 per cent of GDP, down from 33 per cent in 2011-12 and 31.1 per cent in 2012-13.

The highest contributor to the gross saving was the household sector, with a share of 59.4 per cent in the year 2013-14. However, the share has declined from 67.3 per cent in 2011-12 and 63.4 per cent in 2012-13. This decline can be attributed to the decline in household savings in physical assets, which has declined from Rs 13.4 lakh crore in 2011-12 to Rs 12.1 lakh crore in 2013-14.

On the other hand, the share of non-financial corporations has increased from 29.3 per cent in 2011-12 to 34.5 per cent in 2013-14. The share of financial corporations has been around 9 per cent in all these years, while the dis-saving of government has decreased from 5.4 per cent in 2011-12 to 3.2 per cent in 2013-14.

Gross Capital Formation (GCF) to GDP ratio excluding valuables declined from 33.9 per cent to 31 per cent during 2012-13 and 2013-14.

Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 50.9 lakh crore for the base year 2011-12, increasing to Rs 58.8 lakh crore in 2012-13 and further to Rs 67.7 lakh crore in 2013-14. In terms of GDP, the rates of PFCE at current prices during 2011-12, 2012-13 and 2013-14 are estimated at 57.6 per cent, 58.8 per cent and 59.7 per cent, respectively.

At constant (2011-12) prices, the PFCE is estimated at Rs 53.7 lakh crore and Rs 57 lakh crore for the years 2012-13 and 2013-14, respectively.

The government also estimates that Per Capita Income at current prices rose from Rs 71,593 (2012-13) to Rs 80,388 (2013-14). Correspondingly, Per Capita PFCE at current prices, rose from Rs 47,572 to Rs 54,133.