New 'Base Year' to calculate GDP; its 2011-12 from 2004-05
India's GDP for Fiscal Year 2015 is now expected to grow by 6.6 per cent - much higher than 5.5 per cent measured earlier by the old method (Base Year).
The new method of calculating 'National Account' replace 'GDP at factor cost' by Gross Value Added (GVA) at basic prices, in line with the practice in OECD countries.
This will make it easier to compare our growth data with those countries and the result will be more accurate and reliable.
The base year - last revised in January 2010 - is updated every five years.
The Ministry of Statistics & Programme Implementation has revised the base year to 2011-12 from 2004-05.
How its different from annual data updation?
- Base year revisions differ from annual revisions in National Accounts primarily because of nature of changes.
- In annual revisions, changes are made only on the basis of updated data becoming available without making any changes in the conceptual framework or using any new data source, to ensure strict comparison over years.
- In case of base year revisions, apart from a shift in the reference year for measuring the real growth, conceptual changes, as recommended by the international guidelines, are incorporated.
- Further, statistical changes like revisions in the methodology of compilation, adoption of latest classification systems, and, inclusion of new and recent data sources are also made.
- Changes are also made in the presentation of estimates to improve ease of understanding for analysis and facilitate international comparability.