Focus on upgrading out methodology in line with UN standards. In 2015, CSO introduced few changes.
New method recommended by UN System of National Accounts
- will make India’s GDP growth number comparable with developed nations
- method followed at international practice
Base year: 2004-05 → 2011-12
- National Statistical Commission advised revising Base Year of all indices every 5 years
- Base year generally stable years with fewer fluctuations and availability of reliable data. Generally recent year to facilitate easy calculations
- Recently, Ministry of Statistics and Program Implementation (MoSPI) considering updating base year to 2017-18
Change in data used to measure manufacturing sector growth
- performance of the manufacturing sector was previously evaluated using data from an annual survey of industries which comprises over 2L factories.
- Post 2015, data of Ministry of Corporate Affaics (MCA21) includes around 5L companies
Replacing FC with Market Prices
- CSO will measure GDP by the GVA method, GDP at basic prices instead of FC
- industry wise estimates will be presented as GVA at basic prices, while GDP @ MP will be simply referred to as GDP
- Basic prices include net production taxes only
Calculation of Labour Income
- before 2015, all labour used to be equal
- after 2015, concept of effective labour input is used, i.e. different weights assigned based on whether one is an owner, a hired professional or a helper
Changes in calculation of agri income
- earlier data included only VA in farm produce but new data includes VA in livestock as well
Improved coverage of financial corp
- by including stock brokers, stock exchanges, asset mgmt companies, mutual funds, pension funds as well as regulatory bodies like SEBI and IRDAI