GDP growth in FY15 seen at 7.4% based on new calculation method

New Delhi: Economy is likely to grow at a faster pace of 7.4 percent in the current fiscal as against 6.9 percent in 2013-14, according to government’s advance estimates for GDP based on the new calculation methodology. The data further said economy grew by 7.5 percent in the October-December quarter of the current fiscal after a growth rate of 8.2 percent in the preceding quarter. [caption id=“attachment_2085575” align=“alignleft” width=“380”]  ThinkStock[/caption] “Real GDP or GDP at constant (2011-12) prices in the year 2014-15 is likely to attain a level of Rs 106.57 lakh crore, as against the First Revised Estimate of GDP for the year 2013-14 of Rs 99.21 lakh crore, released on 30 January 2015. “The growth rate in GDP during 2014-15 is estimated at 7.4 percent as compared 6.9 percent in 2013-14,” the Central Statistics Office (CSO) said. The sectors which registered a growth rate of over 7 percent are financial, real estate and professional service; trade, hotels, transport, communication and services related to broadcasting; public administration, defence and other services; and electricity, gas, water supply and other utility services. Growth in the agriculture, forestry and fishing; mining and quarrying; construction and manufacturing’ is estimated to be 1.1 percent, 2.3 percent, 4.5 percent and 6.8 percent, respectively. The government had recently updated the base year to calculate Gross Domestic Product (GDP) to 2011-12 from 2004-05. The data further showed that GDP at current prices in 2014-15 is likely to attain a level of Rs 126.54 lakh crore, up 11.5 percent from Rs 113.45 lakh crore in 2013-14. The per capita net national income during 2014-15 is estimated to be Rs 88,538, up 10.1 percent as compared to Rs 80,388 during 2013-14 with the growth rate of 12.3 percent. At constant prices, the per capita income (at 2011-12 prices) during 2014-15 is likely to attain a level of Rs 74,193 as compared to Rs 69,959 in 2013-14. The growth rate in per capita income is estimated at 6.1 percent as against the previous estimate of 5.4 percent. The Gross Value Added (GVA) at basic constant prices (2011-12) is anticipated to increase from Rs 91.70 lakh crore in 2013-14 to Rs 98.58 lakh crore in 2014-15, according to the data The estimated growth in manufacturing, mining and quarrying, electricity, gas and water supply, and construction is estimated to be 6.8 percent, 2.3 percent, 9.6 percent and 4.5 percent, respectively during 2014-15 as compared to growth of 5.3 percent, 5.4 percent, 4.8 percent and 2.5 percent, respectively, in 2013-14. In the third quarter of the fiscal, growth in agricultural sector contracted by 0.4 percent as against a growth of 3.8 percent in the corresponding period last year. Mining and quarrying sector too expanded at a slower rate of 2.9 percent as compared to 4.2 percent as against 4.2 percent in third quarter of last fiscal. Manufacturing too slowed to 4.2 percent as against a growth of 5.9 percent registered year-on-year. Financial, real estate and professional services segment grew by 15.9 percent in third quarter, a much faster pace than the similar period last year. Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 36.13 lakh crore in 2014-15 as against Rs 33.68 lakh crore in 2013-14. At constant (2011-12) prices, the GFCF is estimated at Rs 31.76 lakh crore in 2014-15 as against Rs 30.50 lakh crore in 2013-14. In terms of GDP, the rates of GFCF at current and constant (2011-12) prices during 2014-15 are estimated at 28.6 percent and 29.8 percent, respectively, as against the corresponding rates of 29.7 percent and 30.7 percent, respectively in 2013-14. “The GFCF is expected to register growth rate of 7.3 percent at current prices and 4.1 percent at constant prices,” the data said. PTI