Question- Recently according to the ‘First Advance Estimates of National Income’ issued by ‘Ministry of Statistics and Program Implementation’, what percentage of India’s GDP growth rate is estimated to be in the year 2017-18?
(a) 6.5 percent
(b) 7.4 percent
(c) 7.2 percent
(d) 7.5 percent
- On January 5th, 2018, for the year 2017-18 the first advance estimates of the National Income by the National Statistical Organization (CSO) were released.
- It is important that under this ‘Ministry of Statistics and Program Implementation’ this organization is a responsible institution for the compilation of national accounts.
- In addition, it compiles the Index of Industrial Production, annual survey of industries and organizing economic calculation and Consumer Price Index.
- According to the recent estimates of the CSO, GDP growth in the year 2017-18 is down by 0.6 percent from 7.1 percent in the year 2016-17.
- Estimated growth of real GVA at the original prices in the year 2017-18 is 6.1 percent compared to 6.6 percent in the year 2016-17.
- Sectors that registered more than 7 percent are ‘Public administration, defense and other services’, ‘services related to business, hotels, transport, communication and broadcasting’, ‘electricity, gas, water supply and other utility services, and’ financial , Real estate and professional services’.
- In the year 2017-18, the increase in ‘agriculture forestry and fishing’, ‘mining and quarrying’, ‘manufacturing and construction’ is estimated at 2.1 percent, 2.9 percent, 4.6 percent and 3.6 percent, respectively.
- Whereas in the previous year (2016-17) the growth rate of these sectors is 4.9 percent, 1.8 percent, 7.9 percent and 1.7 percent, respectively.
- Thus, due to poor performance of agriculture and manufacturing sector, the growth rate of GDP will be at the lower level of 6.5% in the current year 2017-18.
- This will be the lowest growth rate in the current working Central Government.
- The increase in per capita income is estimated at 5.3 percent this year (in 2017-18) compared to 5.7 percent for the year 2016-17.