India’s GDP Performance for the first quarter

Why in the News

The quarterly Gross Domestic Product (GDP) estimates for the April to June quarter of financial year 2026 27 were released.

Core Facts

1. Compiling body: The National Statistics Office (NSO), the official statistics agency under the Ministry of Statistics and Programme Implementation (MoSPI), compiles GDP.
2. Two approaches: GDP is estimated through the production side. It is also estimated through the expenditure side.
3. Production measure: The production side is built from Gross Value Added (GVA), the value of output minus the value of inputs at each stage.

Static Context

1. GDP and GVA link: GDP equals GVA plus product taxes minus product subsidies.
2. Base year: The current GDP series uses a 2011 12 base year, and the revision took effect in January 2015.
3. Methodology shift: The 2015 revision moved to GVA at basic prices and expanded use of the corporate database for the industrial sector.
4. Real and nominal: Real GDP is measured at constant prices and nominal GDP at current prices.

Prelims Angle

1. The difference between GDP and GVA is a repeat hook.
2. The base year is 2011 12 and the compiling body is the NSO under MoSPI.
3. Market prices versus basic prices is a standard trap.

Mains Angle

1. GS3, Indian economy, planning and growth: A question can ask about the 2015 methodology change.
2. The growth side: It can ask about potential GDP and the factors holding India below it.

Matching Previous Year Question

“[2021, GS3, 10 marks] Explain the difference between computing methodology of India’s Gross Domestic Product(GDP) before the year 2015 and after the year 2015.”