In this week’s edition of ‘GDP: Graphs, Data and Perspectives’, Udit Misra writes that the updated base year for GDP calculations means a correction of estimates about the size of India’s GDP, as well as the per capita income of its population
Last week, India’s Ministry of Statistics and Programme Implementation (MoSPI) came out with new estimates of Gross Domestic Product, or GDP. The GDP is essentially the market price of all “final” (as against intermediate) goods and services that are produced within the geographical boundaries of India.
The GDP shows the size of India’s economy. Broadly speaking, the bigger the size of the economy, the more prosperous a country is.
From time to time, GDP estimates have to be refreshed because every economy, especially one as dynamic as India’s, goes through several changes, such as the prices people pay, the goods and services they purchase, etc. To get a more accurate picture, MoSPI comes out with regular revisions of India’s GDP.
