NSO Advance Estimates – Economics – Free PDF Download

 CURRENT AFFAIR

• The National Statistical Office (NSO) recently released the first advance estimates of the national income for  2019-20.

HIGHLIGHTS

• NSO projected growth in India’s GDP at market prices for 2019-20 at 4.98% in “real” terms.
• This is the lowest since the 3.89% in the global financial crisis year of 2008-09.

What are nominal GDP and real GDP?

• GDP is the total market value of all goods and services produced in the economy during a particular year.
• This is inclusive of all taxes and subsidies on products.
• The market value taken at current prices is the nominal GDP.
• The value taken at constant prices (prices for all products taken at an unchanged base year) is the real

IMPLICATIONS

• The current fiscal year seems extraordinary because the gap between nominal and real GDP growth is just 2.6 percentage points.
• Producers have not gained from either higher output or higher prices.

CONCERNS

• In the 2019-20 Budget, Finance Minister had assumed nominal GDP would grow by 12% to Rs 211.01 lakh
• However, the NSO’s latest projection of nominal GDP for 2019-20 is only Rs 204.42 lakh crore.
• Even if the Centre’s fiscal deficit is contained at the budgeted numbers, it would be 3.44% of GDP, as  against the originally targeted 3.3%.

National Statistical Office

• The National Statistical Office (NSO) forms the Statistics Wing of the Ministry of Statistics and  Programme Implementation.
• It consists of the Central Statistical Office (CSO), the Computer center and the National Sample Survey  Office (NSSO).
• It is responsible for conduct of large-scale sample surveys in diverse fields on All India basis.

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