New Delhi, March 1 (IANS) The government on Friday said there was no downward revision of GDP growth for 2018-19 (at 7 per cent) if seen in the context of growth rates for the last two financial years.
Subhash Chandra Garg, Secretary, Department of Economic Affairs (DEA), said on Friday the Second Advance Estimates of GDP factored in a higher base.
“The growth needs to be looked at in view of the higher base,” Garg said.
On Thursday, the Central Statistics Office (CSO) lowered the FY19 GDP growth in the Second Advance Estimates of national income to 7 per cent from 7.2 per cent in the First Advance Estimates, attributing it to a slowdown in agriculture and manufacturing.
“The GDP was revised last year as well as the year before. This growth is on top of that. The real GDP has been revised upwards to Rs 144 lakh crore from the GDP in the first estimates for 2018-19, which was Rs 141 lakh crore. So the GDP has actually gone up from the earlier estimates,” Garg said.
“Likewise, the nominal GDP has been revised upwards from Rs 188 lakh crore to Rs 190 lakh crore. So there is an upward revision in GDP as compared to the first estimates. Therefore, the 7 per cent growth has to be seen in the context of a much higher base due to the revisions which have been made.
“Last year’s GDP was initially 6.7 per cent while this year’s projection was 7.2 per cent. Now the previous year’s GDP has been revised to 7.2 per cent while the projection for 2018-19 has been revised to 7 per cent. If these factors are taken together, the GDP has actually gone up from 6.9 per cent to about 7.1 per cent. There is no downward revision,” the DEA Secretary said.
India’s economic growth slowed to a five-quarter low of 6.6 per cent in the October-December period of the present fiscal, according to the CSO statement released on Thursday.
Slower growth in Q3, and the downward revisions in Q1 and Q2, has brought down the overall GDP projection for 2018-19 to 7 per cent from the earlier estimate of 7.2 per cent.