The government has announced a change in the base year for the calculation of Gross Domestic Product (GDP). It will now be updated from 2011-12 to 2022-23. This means that now to find out the economic condition of the country (GDP), the government will compare the new data with the financial year 2022-23. This method will give the most accurate estimate of GDP. There was no change in it for more than a decade. Earlier, the government had changed it in 2011-12. Ministry of Statistics and Program Implementation Minister Rao Indrajit Singh gave this information in a written reply in the Rajya Sabha on Monday. On the project of this change, the government has constituted a 26-member advisory committee under the National Accounts Statistics (ACNAS), which is headed by Biswanath Goldar. The committee includes a team of central and state governments, Reserve Bank of India, academics and researchers. What will change with the change in base year? What is GDP? GDP is one of the most common indicators used to track the health of the economy. GDP represents the value of all goods and services produced within the country in a specific time period. It also includes foreign companies that produce within the country’s borders. There are two types of GDP GDP. Real GDP and nominal GDP. In real GDP, the value of goods and services is calculated on the base year’s value or stable price. Currently, the base year for calculating GDP is 2011-12. Nominal GDP is calculated on current prices. How is GDP calculated? A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export. Who is responsible for the increase or decrease in GDP? There are four important engines to increase or decrease GDP. First is you and me. Whatever you spend, it contributes to our economy. Second is the business growth of the private sector. It contributes 32% to GDP. Third is government expenditure. It means how much the government is spending to produce goods and services. It contributes 11% to GDP. And fourth is net demand. For this, India’s total exports are subtracted from total imports, because in India imports are more than exports, so its impact on GDP is negative. ———————————————– Also read this news related to the country’s GDP growth… India’s GDP growth will be 7% in FY25: IMF said – Indian economy will grow at the rate of 6.5% in FY26 The International Monetary Fund i.e. IMF has maintained the estimate of India’s Gross Domestic Product i.e. GDP growth at 7% for the financial year 2024-25. At the same time, the GDP estimate for the financial year 2025-26 has also been retained at 6.5%. Earlier in July, the IMF had raised India’s GDP growth estimate for the financial year 2024-25 by 0.20% to 7%. Then the GDP estimate for the financial year 2025-26 was stated as 6.5%. At the same time, in April also, the IMF had given the same estimate for FY26. Click here to read the full news… World Bank raised India’s GDP growth estimate by 0.4%: 7% for the financial year 2024-25, RBI had estimated it to be 7.2% The World Bank has raised India’s Gross Domestic Product (GDP) growth estimate for the financial year 2024-25 from 6.6% to 7%. World Bank Country Director (India) Auguste Tano Koume said that in the last financial year 2024, the Indian economy grew at a rate of 8.2%, which was the fastest. India’s economy is still growing at a good pace. In such a situation, the World Bank has increased its growth forecast for the current financial year. Click here to read the full news…
