Govt revises FY16 GDP growth to 7.9% from 7.6%

Ministry of Statistics & Programme Implementation on Tuesday revised the real Gross Domestic Product (GDP) growth to 7.9% for the fiscal year 2016 as against 7.6% in earlier estimates. 

"Real GDP or GDP at constant (2011-12) prices for the years 2015-16 and 2014-15 stands at Rs. 113.58 lakh crore and Rs. 105.23 lakh crore, respectively, showing growth of 7.9 per cent during 2015-16 and 7.2 per cent during 2014-15," Ministry said. 

The nominal Net National Income (NNI) at current prices for the year 2015-16 stood at Rs 120.83 lakh crore as against Rs 109.61 lakh crore in 2014-15, showing an increase of 10.2% during 2015-16 as against an increase of 10.7% in the previous year.

As per the Ministry, the Gross National Disposable Income (GNDI) at current prices is estimated as Rs 139.29 lakh crore for the year 2015-16, while the estimate for the year 2014-15 stood at Rs 126.91 lakh crore, showing a growth of 9.7% as against 10.4% in the year 2014-15.

In a statement, Ministry gave the major reasons for variation between the Provisional Estimates (released in May 2016) and the First Revised Estimates of GVA for 2015-16. For the Primary sector, the provisional estimates were 2.2% and the revised estimate is 2.6% because of production of some crops, livestock products, fish and forestry products; and use of annual financial reports of public & private sector companies in place of IIP in the case of ‘mining & quarrying’.

For Secondary sector, the Provisional estimates were 7.4% and the first revised estimate is 7.8% due to actual analysis of financial reports of a larger sample of public & private sector companies instead of key financial indicators derived from advance filings of a small sample of Companies used earlier.

Lastly, for tertiary sector, the provisional estimates were 8.9% and the revised estimates is 9.8%. The reason of the variation is the use of Revised Estimates of sales tax and other items in central & state government budget documents instead of Budget Estimates; and replacement of key financial indicators derived from advance filings of a small sample of Companies with actual analysis of financial reports of a larger sample of public & private sector companies.