Gross Value Added
In 2015, India opted to make major changes to its compilation of national accounts and decided to bring the whole process into conformity with the United Nations System of National Accounts (SNA) of 2008.
The SNA is the internationally agreed standard set of recommendations on how to compile measures of economic activity. It describes a coherent, consistent and integrated set of macroeconomic accounts in the context of a set of internationall
Inevitable collapse: on the steepest contraction of GDP
As per the provisional data released by the National Statistical Office, India’s Gross Domestic Product (GDP) has suffered its steepest contraction on record in the April-June quarter, as output shrank 23.9% in the quarter in comparison to the same period in 2019.
Reasons for decline in GDP:
1. Decrease in demand:
The stringent COVID-19 lockdowns in force during the period of the first quarter seem to h
Historic recession: On India’s GDP slump
The fact that India’s economy entered a technical recession in the July-September period has now been confirmed by National Statistical Office data.
Provisional estimates of gross domestic product for the second quarter of the year ending in March 2021 show economic output shrank by 7.5%, following the 23.9% contraction in the first quarter.
Not only has the economy shrunk for a second successive quart
Gross Domestic Product vs Gross Value Added
Gross Domestic Product
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.
GDP includes all private and public consumption, government outlays, investments, private inventories, paid-in construction costs and the foreign balance of trade (exports are added, imports are subtracted)
Thus the components of GDP are Consumption (C) p
Contraction in GDP due to Lockdown
Advance Estimates of National Income project an 8% Contraction in GDP.
NSO revised the 1stquarter GDP shrinkage to 24.4% from 23.9%
Government spending, public administration, defence and other services contracted.
Services like Retail, trade, hotels, transport and communication contracted 7.7%.
Informal sector, Microenterprises, contact intensive services, stress in employment Reflect no recovery in job sector.
Revival in Lockdown-caused-contraction in GDP
Advance Estimates of National Income project 8% Contraction in GDP.
For the fiscal year 2020-21, GDP contraction is estimated at 8.5 per cent by World Bank as against a growth of 4 per cent during FY 2019-20.
The general government deficit is expected to remain above 10% of GDP until FY22.
NSO revised 1stquarter GDP shrinkage to 24.4% from 23.9%.
After reaching 8.3% in FY17, growth decelerated to 4.0 per cent in FY20. The sl