(The Gist of PIB) First Revised Estimates of National Income [FEBRUARY-2020]
(The Gist of PIB) First Revised
Estimates of National Income
First Revised Estimates of National
India’s prolonged slowdown appears to be deeper than anticipated as the
country’s growth has been sharply revised down by 0.7 percentage points.
According to the earlier estimates, the GDP growth rate in the previous
year was 6.8 per cent, which was already at a five-year low.
Now, the GDP growth of the last fiscal year has been further lowered to
a mere 6.1 per cent, according to the First Revised Estimates of National
Income, Consumption Expenditure, Saving and Capital Formation, 2018-19.
In contrast, the low GDP growth of the previous year may improve the
base effect that can push the current fiscal’s GDP growth figures.
Going by the revised estimates, the GDP growth rate for FY18 also stood
7 per cent, which was recorded at 7.2 per cent. This is the second revised
estimate for this year. Earlier this month, the government had released the
estimates that pegged the current year’s GDP growth at 5 per cent.
The GDP growth for FY2019 has been revised down to 6.1% from 6.8%, led
by private consumption.
The growth rates for FY2019 may well undergo additional changes once the
data from the Annual Survey of Industries becomes available.
India’s GDP growth has been continuously falling for the past six
quarters and the FICCI Economic Outlook survey has said that it may take up
to another six quarters for the economy to come back to its full swing.
The slowdown has hit the economy on almost all the quarters and the
scars of slow growth are visible across industries. Factory output has
barely expanded after continuously contracting for the three months to