India’s GDP Growth Revised to 6.1% in FY19 – Free PDF Download

• The press release on Friday presented-

1. First Revised Estimates for 2018-19,
2. The Second Revised Estimates for 2017-18
3. The Third Revised Estimates for 2016-17.

WHY GOVERNMENT REVISES THE GDP DATA?

• At one level, GDP data revisions are a routine exercise.
• Revising these data are important because often the more accurate information about  variables is available only with a lag.
• This is especially true for sectors like agriculture.

WHAT HAS LED TO THE DOWNWARD REVISION?

• In the revised estimates, The growth in gross value added in the primary sector has been cut from 2.7% to just 1%.
• The growth in the secondary sector too has been dialled down from5% to 6%.
• GVA growth was revised to 6% for the last fiscal compared with a provisional  estimate of 6.6%.

SIGNIFICANCE OF THE DOWNWARD REVISION?

• Although the revision process is routine,
• It is the sharpness of the revision that is surprising and is likely to raise question marks  about the system’s ability to accurately map  economic growth.

• Secondly, it would be interesting how this downward revision affects the GDP growth rate  revision for the current financial year (2019-20).
• Because typically a lower base in 2018-19 would imply that, with the same level of absolute growth  in 2019-20, the growth rate would be higher.

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