Alteration in GDP due to new methods

Abstract

Gross Domestic product is the final value of goods and services produced within the geographical boundaries of a country during a specified period of time, normally a year. This single word is wide concept in itself which display the entire scenario of an economy. The change in the GDP calculations was devised by India’s statisticians working for the central Statistical Organisation that is under the Ministry of Statistics & Programme Implementation (MOSPI), who released the new figures. There have been no changes so far in calculation of GDP leaving shift in base year. Changes have occured in GDP analysis like GDP which used to calculate at factor cost has been converted into market price and Central statistical organisation (CSO) has broadened the base to collect data analysis. Changes are making the increment in gross domestic product (GDP) by more than 40 per cent from 4.7 per cent in FY 2012-13 to 6.9 per cent (2013-14). This 40 per cent increment is due to change in methodology.The relevant data were collected from the specified documents, economic surveys and compiling data bases in order to analyze the material and arrive at more accurate comprehension regarding the data analysis of growth rate in the wider terms. The paper has shown that alterations which have been adopted, all are lifting the growth rate up whether it’s being due to change in method or being consideration of GDP deflators.