Central Statistics Office's Gross Domestic Product (GDP) recalibration is based on FY11-12 prices and covers new sectors with a new methodology, said Rajiv Kumar, vice chairman, NITI Aayog.

Share Market Live

NSE

The CSO has recalibrated the entire economy based on a methodology which is much closer to the UN system of National Accounts 2008, Kumar said.

"This exercise is a recalibration of economic activity for the years from 2004-2005 to 2011-12. What the Sudipto Mundle committee had looked at the level of the GDP for two series, one based on 2004-2005 and the other based on 2011-2012," Kumar said.

One based on 2011-2012 is Rs 3 lakh crore higher than the previous one and they distributed it equally to all the previous years on the assumption that GDP growth rate can only change gradually and so do prices, he added.

The government on Wednesday lowered the GDP growth rates for a majority of the previous 10 years of the United Progressive Alliance (UPA) regime, saying the data has been recalibrated to reflect a more appropriate picture of the economy.

The GDP growth rates for FY 2006-12 have been revised using new back series data, chief statistician Pravin Srivastava said at a press conference.

As per the data released by the CSO, the economy in 2010-11 grew by 8.5 percent and not 10.3 percent estimated earlier.

There is an approximate 1.7 percent drop in the new series for the previous years and that is in some sense an admission by the CSO of having overestimated the tertiary sector growth," Kumar said.

Now all of that has been re-estimated using a far more superior methodology, better data and also sector-specific WPI (wholesale price index) and CPI (consumer price index) and as a result of which the tertiary sector growth rate has come down for those years, he added.

First Published:Nov 28, 2018 10:50 PM IST