Question- Explain the difference between the computing methodology
of India’s Gross Domestic Product (GDP) before the year 2015 and
after the year 2015. (Answer in 150 words) (UPSC 2021)
HINT-
|
GDP Calculation Before 2015 |
GDP Calculation After 2015 |
|
1.
The earlier base year for calculation of GDP
was 2004-05. 2.
GDP was calculated at factor cost. 3.
Index of Industrial Production (IIP) was used to
measure manufacturing and trading activity. 4.
In the older system, GDP was first estimated by using
the IIP data and then updated using the ASI data (Annual Survey of Industries).
ASI accounted only for those firms which were registered under
the Factories Act. |
1.
The government moved to a new base year
of 2011-12 for GDP calculation. 2.
GDP is now calculated at Market Price. 3.
The international practice of valuing industry-wise estimates
as gross value added (GVA) at basic prices was adopted. 4.
The government adopted MCA-21 database, which
allows the firms/companies to electronically file their financial
results. |
Answer
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