India Changes GDP Calculation Method Statistics Ministry Changing Base Year for Benchmark, Switches to Market-Price Calculation , The Indian statistics ministry said that after updating the base year used for marking trends in the economy and switching to a market-price calculation of gross domestic product, the economy grew by 6.9% in the year that ended last March. Using the previous methodology, GDP expansion that year was 4.7%.
Since January 2010, the base year for India’s statisticians had been the 12 months that ended in March 2005. F
The updated calculation also suggests that manufacturing in the year ended March 2014 was a larger share of India’s economic activity than previously thought—18% instead of 15%—while real estate, hotels and financial and business services constituted a smaller share—51% instead of 60%. Agriculture’s contribution grew to 17% from 14% with the revision.
“Real GDP or GDP at constant (2011-12) prices stands at Rs 92.8 lakh crore and Rs 99.2 lakh crore, respectively for the years 2012-13 and 2013-14, showing growth of 5.1 percent during 2012-13, and 6.9 percent during 2013-14,” said a release.