The economy is estimated to have grown by close to 8 per cent in 2015-16 even as the Economic Survey estimated subdued growth prospects in the current and next fiscals.
According to the first revised estimates of national income for 2015-16, which was released by the Central Statistics Office (CSO) on Tuesday, the gross domestic product grew 7.9 per cent. In the provisional estimates released in May 2016, the economy was estimated to have grown at 7.6 per cent.
This is the highest growth rate since 2010-11 when the economy expanded by 8.4 per cent.
The estimates of GDP and other aggregates have been revised due to use of more recent data such as agricultural and industrial production, actual analysis of financial data of public and private firms as well as revised estimates of sales tax. The CSO also revised the GDP estimate for 2014-15 to 7.2 per cent from its earlier projection of 7.3 per cent.
GVA up 7.8% Gross value added (GVA) in the economy grew by 7.8 per cent in 2015-16 as against 7.2 per cent in the provisional estimate. GVA grew by 6.9 per cent in 2014-15. “The growth in real GVA during 2015-16 has been higher than that in 2014-15 mainly due to higher growth in agriculture, manufacturing, trade, transport and real estate,” said an official release.
The data revealed that the primary, secondary and tertiary sectors of the economy registered higher growth in GVA than what was projected in the provisional estimates.
GVA growth in the primary sector was pegged at 2.6 per cent in the first revised estimates, as against 2.2 per cent in the provisional estimate. Similarly, the latest data estimated GVA growth in the secondary sector at 7.8 per cent as against the earlier projection of 7.4 per cent. Meanwhile, GVA growth for the tertiary sector has been revised up to 9.8 per cent from 8.9 per cent previously.
Meanwhile, per capita income rose to ₹94,178 in 2015-16 while it was pegged at ₹86,513 in 2014-15. Per capita private final consumption expenditure at current prices is estimated at ₹61,571 for 2015-16 and ₹57,402 and for 2014-15.
However, pointing to lower investments, the data noted that the rate of gross capital formation to GDP fell to 35.5 per cent in 2015-16 from 35.8 per cent in 2014-15. Similarly, the rate of PFCE in relation to GDP is estimated at 57.8 per cent in 2015-16 and 58.5 per cent in 2014-15.