India Changes GDP Calculation Method Statistics Ministry Changing Base Year for Benchmark, Switches to Market-Price Calculation , The Indian statistics ministry said that after updating the base year used for marking trends in the economy and switching to a market-price calculation of gross domestic product, the economy grew by 6.9% in the year that ended last March. Using the previous methodology, GDP expansion that year was 4.7%.
Since January 2010, the base year for India’s statisticians had been the 12 months that ended in March 2005. From now on, it will be the year that ended March 2012.
The updated calculation also suggests that manufacturing in the year ended March 2014 was a larger share of India’s economic activity than previously thought—18% instead of 15%—while real estate, hotels and financial and business services constituted a smaller share—51% instead of 60%. Agriculture’s contribution grew to 17% from 14% with the revision.
“Real GDP or GDP at constant (2011-12) prices stands at Rs 92.8 lakh crore and Rs 99.2 lakh crore, respectively for the years 2012-13 and 2013-14, showing growth of 5.1 percent during 2012-13, and 6.9 percent during 2013-14,” said a release.