BACK SERIES OF GDP AND ITS IMPORTANCE

BACK SERIES OF GDP AND ITS IMPORTANCE India now measures GDP by market prices instead of factor costs, so that gross value addition in goods and services, as well as indirect taxes, is taken into account. The base year has also been shifted to 2011/12 from 2004/05. The new method is more in line with global practices and gives a better picture of economic activity. So, recalculating the growth rates of previous years based on new methodology is back series data. Incumbent Union Finance Minister has rejected opposition’s criticism of new GDP data series arguing that the new GDP series is more broad-based and is a better reflection of the Indian economy and is globally more comparable. Best ISS coaching in Delhi  observes that in a way, according to this back-series calculation of GDP under new series in 2010-11 stands out as an exceptional year when not only GDP and GVA growth rates grew rapidly but also net indirect tax collection increased by an unprecedented 31.5 percent. However...