Current Gross Domestic Product (GDP) of India

As per Investopedia, India is the fifth-largest (and fastest-growing) economy of the world with a nominal of $2.94 trillion GDP. Gross Domestic Product (GDP) of 2019-20 (Quarter-3) was Rs. 49,343 billion at a growth rate of 4.5% as in the report published by the Indian government. Let’s have a look at the GDP and other factors of Indian economic growth in this article in a layman’s language.

Earlier in 2017, the Indian GDP was around 1,820 lakh crore rupees as per the world bank equivalent to the GDP of the United Kingdom.

Current Gross Domestic Product (GDP) of India

What is Gross Domestic Product (GDP)

Gross Domestic Product is the total monetary value of all the goods produced and services provided in the country during a certain period of time. It is calculated quarterly or yearly. GDP is considered a key indicator of measuring the economic performance of a country. GDP is a gauge of a country’s economic health.

GDP Growth Rate India

GDP is usually expressed in percentage, computed by comparing it to the previous GDP. This percentage value is called the GDP Growth Rate. Commonly quarterly and yearly comparisons are made.

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Where do GDP figures come from

In India, the Central Statistics Office (CSO)(works under the Ministry of Statistics and Programme Implementation) collects the required GDP figures. The raw data is collected through compiling National Accounts, conducting Annual Survey of Industries and Economic Censuses, compiling Index of Industrial Production and of Consumer Price Indices.

The GDP figures are released on a quarterly basis with a delay of approximately 1 to 2 months, which are then revised to release the final figures.

For instance, GDP figures of Q2 (July-Sep) of 2019 were released on 29th November 2019. The release dates of the GDP figures were fixed in advance and can be accessed at MOSPI Advance Release Calendar.

Advance Release Calendar for the year 2020
Current Gross Domestic Product (GDP) of India

Source: Mospi.gov.in

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How do you calculate Gross Domestic Product (GDP) of India

You can make an estimate of GDP figures using Gross Value Added (GVA) methodology. You can use three approaches to calculate Gross Value Added (GVA):

1. Production Approach

The Production Approach breaks down the economy into various economic units such as agriculture, forestry and many more. This is also called The factor cost figure.

The factor cost figure is calculated by calculating net change in value for each sector during a particular time period. The following are the industry sectors considered-

  • Agriculture, forestry, and fishing
  • Mining and quarrying
  • Manufacturing
  • Electricity, gas, water supply, and utility services
  • Construction
  • Trade, hotels, transport, communication and broadcasting services
  • Financial, real estate, and professional services
  • Community, social, public admin, defense and personal services

Compute the value by deducting the total value of inputs from the total value of production/output (goods or services).

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Below is a sample report showing GDP growth rate of 6.9% for Q2 using production approach.

Current Gross Domestic Product (GDP) of India - production

Source: Investopedia.com

2. Expenditure Approach

The Expenditure approach takes into account the total expenditure on finished goods and services procured in the economy, for example, consumer spending, government spending, capital investment, imports, and exports.

GDP = Private or Consumer Expending (C) + Government Spending (G) + Capital Investment (I) + Net Exports (Exports-Imports)

Here’s the sample report showing an overall GDP change using the Expenditure approach.

Current Gross Domestic Product (GDP) of India

Source: Investopedia.com

Because of 59.5% domestic household consumption in the economy makes India unaffected to some extent of global economic slowdowns.

3. Income Approach

The Income Approach takes into account the income earned by the Individuals (wages) and corporate (profits) in the process of producing finished goods and services.

Overall Gross Domestic Product is calculated by adding Taxes and reducing subsidies from the GVA:

GDP = GVA + Taxes on Goods/Services ? Subsidies on Goods/Services.

Download GVA and GDP 2019-20 Reports

What is Current GDP of India

You will get to know about the current GDP of India along with a comparison with previous years. I am giving a comparison with previous years to give you a better idea of the economic growth of India in recent years. I am showing tables of real and nominal GVA along with real and nominal GDP of 2019-20. The base prices for real GDP are taken of the year 2011-12.

Let’s give you a brief of terms to ease your mind before going through calculation tables –

National Statistical Office (NSO) always calculates and publishes both Real GDP and Nominal GDP figures.

Nominal GDP (at current prices): Nominal GDP is calculated without taking inflation into account. Thus, even if there is no actual growth in the actual value of GDP, the data would always show continuous growth in GDP. In simple terms, we can say that, in the absence of any actual increase in GDP, the growth rate shown under the Nominal GDP denotes the inflation rate.

Real GDP (at 2011-12 prices): Real GDP is the actual measurement of growth in GDP. Real GDP is calculated on prices with respect to a given base year (2011-12) and these inflation-adjusted values show a true measurement of growth in the economy.

Thus, I am going to show a total of 4 tables with slightly different figures published.

#1. Real GDP of India for 2019-20

QUARTERLY ESTIMATES OF GVA AT BASIC PRICES IN Q2 (JULY-SEPTEMBER) OF 2019-20

(Real GVA at 2011-12 Prices)

Industry

(in crores)

Percentage change

GVA at Basic Price

over previous year

2017-18

2018-19 2019-20 2018-19

2019-20

Q1

Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1

Q2

  1. Agriculture, Forestry & Fishing

404,433

340,906 424,869 357,728 433,547 365,161 5.1 4.9 2.0

2.1

  1. Mining & Quarrying

95,928

74,316 96,308 72,681 98,887 72,776 0.4 -2.2 2.7

0.1

  1. Manufacturing

503,682

545,309 564,815 582,672 568,104 576,560 12.1 6.9 0.6

-1.0

  1. Electricity, Gas, Water Supply &Other Utility Services

67,876

68,063 72,437 73,955 78,682 76,625 6.7 8.7 8.6

3.6

  1. Construction

242,588

233,778 265,970 253,699 281,262 262,149 9.6 8.5 5.7

3.3

  1. Trade, Hotel, Transport, Communication &Services related to Broadcasting

563,038

545,283 606,786 583,123 649,698 611,149 7.8 6.9 7.1

4.8

  1. Financial, Real Estate & Professional Services

728,068

781,351 775,276 836,097 821,198 884,523 6.5 7.0 5.9

5.8

  1. Public Administration, Defence& Other Services

357,203

385,640 383,990 418,792 416,628 467,434 7.5 8.6 8.5

11.6

GVA at Basic Price

2,962,815

2,974,645 3,190,452 3,178,747 3,348,005 3,316,377 7.7 6.9 4.9 4.3

 

QUARTERLY ESTIMATES OF EXPENDITURES OF GDP IN Q2 (JULY-SEPTEMBER) OF 2019-20

(Real GDP at 2011-12 Prices)

Item

(in crores)

RATES OF GDP (%)

Expenditures of Gross Domestic Product

2017-18

2018-19 2019-20 2018-19

2019-20

Q1

Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1

Q2

1. Private Final Consumption Expenditure (PFCE)

1,783,905

1,757,656 1,914,259 1,929,745 1,974,438 2,027,401 56.1 56.1 55.1

56.3

2. Government Final Consumption Expenditure (GFCE)

363,763

368,596 387,599 408,645 421,893 472,576 11.4 11.9 11.8

13.1

3. Gross Fixed Capital Formation (GFCF)

989,620

998,232 1,121,028 1,116,240 1,166,334 1,127,675 32.8 32.4 32.5

31.3

4. Change in Stocks

34,802

37,679 38,245 39,454 39,039 39,137 1.1 1.1 1.1

1.1

5. Valuables

62,728

46,187 42,303 45,958 40,863 40,854 1.2 1.3 1.1

1.1

6. Exports

633,368

647,213 697,740 729,297 737,544 726,549 20.4 21.2 20.6

20.2

7. Less Imports

777,543

754,113 863,352 926,895 899,991 862,478 25.3 26.9 25.1

24.0

8. Discrepancies

71,895

116,016 76,175 100,295 105,055 27,619 2.2 2.9 2.9

0.8

 GDP

3,162,537

3,217,465 3,413,997 3,442,739 3,585,175 3,599,334 100.0 100.0 100.0

100.0

GDP (%age change over previous year) 8.0 7.0 5.0 4.5

#2. Nominal GDP of India for 2019-20

QUARTERLY ESTIMATES OF GVA AT BASIC PRICES IN Q2 (JULY-SEPTEMBER) OF 2019-20

(at Current Prices)

Industry (`in crore) Percentage change
GVA at Basic Price over previous year
2017-18 2018-19 2019-20 2018-19 2019-20
Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2
  1. Agriculture, Forestry & Fishing
584,658 518,297 624,313 539,889 673,664 579,606 6.8 4.2 7.9 7.4
  1. Mining &Quarrying
88,212 67,532 104,736 82,344 110,485 78,697 18.7 21.9 5.5 -4.4
  1. Manufacturing
581,965 632,480 677,419 705,617 691,088 697,824 16.4 11.6 2.0 -1.1
  1. Electricity, Gas, Water Supply &Other Utility Services
106,304 106,778 119,704 124,567 130,075 127,466 12.6 16.7 8.7 2.3
  1. Construction
298,669 291,897 342,766 332,671 372,180 346,803 14.8 14.0 8.6 4.2
  1. Trade, Hotel, Transport, Communication & Services related to Broadcasting
675,552 663,613 763,514 747,274 845,119 792,549 13.0 12.6 10.7 6.1
  1. Financial, Real Estate & Professional Services
882,221 961,176 988,653 1,086,318 1,052,224 1,156,850 12.1 13.0 6.4 6.5
  1. Public Administration, Defence & Other Services
493,322 545,035 560,596 622,830 639,239 729,216 13.6 14.3 14.0 17.1
GVA at Basic Price 3,710,903 3,786,809 4,181,701 4,241,509 4,514,074 4,509,011 12.7 12.0 7.9 6.3

 

QUARTERLY ESTIMATES OF EXPENDITURES OF GDP IN Q2 (JULY-SEPTEMBER) OF 2019-20

(at Current Prices)

Item (`in crore) RATES OF GDP (%)
Expenditures of Gross Domestic Product
2017-18 2018-19 2019-20 2018-19 2019-20
Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2
1. Private Final Consumption Expenditure (PFCE) 2,369,633 2,384,867 2,660,328 2,728,197 2,825,329 2,941,622 58.7 58.3 57.7 59.3
2. Government Final Consumption Expenditure (GFCE) 485,089 504,265 541,256 581,902 606,717 692,068 11.9 12.4 12.4 13.9
3. Gross Fixed Capital Formation (GFCF) 1,160,598 1,176,660 1,358,745 1,367,789 1,454,690 1,381,971 30.0 29.2 29.7 27.8
4. Change in Stocks 39,809 43,264 45,111 46,989 47,805 47,807 1.0 1.0 1.0 1.0
5. Valuables 73,678 53,176 45,964 51,240 43,276 45,735 1.0 1.1 0.9 0.9
6. Exports 764,061 792,960 877,750 932,669 955,993 945,784 19.4 19.9 19.5 19.1
7. Less Imports 928,583 914,135 1,073,071 1,170,093 1,153,551 1,106,908 23.7 25.0 23.6 22.3
8. Discrepancies 58,703 134,974 74,602 140,034 112,433 15,471 1.6 3.0 2.3 0.3
GDP 4,022,988 4,176,031 4,530,685 4,678,727 4,892,693 4,963,549 100.0 100.0 100.0 100.0
GDP (Percentage change over previous year) 12.6 12.0 8.0 6.1

 

Information Credit: All the information is published by the Press Bureau of India as provided by MOSPI.

Sector-wise GDP Contribution in India

Sectors World India USA China
Agriculture 6% 17% 1% 10%
Industry 30% 29% 19% 43%
Services 64% 54% 80% 48%
  1. Agriculture includes crop cultivation, animal husbandry, forestry, horticulture, aquaculture, fishing, and sericulture.
  2. Industry includes construction, textile, pharmaceuticals, petroleum products, and other chemical products.
  3. Services include Information Technology, Health Services, Tourism, Education services, and similar services.

In India, over 51% of the population is directly or indirectly are engaged in farming, but the contribution of the Agriculture sector is only 17% towards the Gross Domestic Product of the country.

Over 27% of Indian Population is employed in the Service sector, while the contribution is 54% in the country’s Gross Domestic Product.

The remaining 22% of Indian Population is associated with the Industry and has given an average contribution of 29% to the country’s Gross Domestic Product.

Conclusion

If you see the Indian economy from post Independence era, the contribution of the Agriculture sector is on the spree of declination and has gone down to 17% from 43%. On the other hand, the service sector has seen a remarkable rise in the contribution from a mere 15% to 54 %. The industry sector has always given a constant contribution towards GDP ranging from 32% to 29%.

I have tried to explain the GDP of India in simple words. How did you like the article, let me know in the comments.

 

One Response

  1. sudipta nag Apr 11, 2016

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