GDP ESTIMATION IN INDIA- PERSPECTIVES AND FACTS

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• The note provides a clear rationale for India’s switch to an improved GDP estimation methodology in January 2015.
  
  
• The new methodology that uses 2011-12 as the base year includes two major improvements:
  • Incorporation of MCA21 database, and
    
    
  • Incorporation of the Recommendations of System of National Accounts (SNA), 2008.
    
    
  
  
  
• This change was in line with other countries that have changed their methodologies in line with SNA 2008 and revised their respective GDP figures. On average, real GDP estimates saw an increase of 0.7 per cent among OECD countries.
  
  
• The note also provides a point-to-point rebuttal to a recently published paper titled ‘India’s GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms, and Implications’ by Dr.Arvind Subramanian.