Question

Recently the government has changed the calculation method of Nation Income. Consider the following statements regarding this-

1. GDP at Factor cost and not GDP at Market price will define the GDP of the nation

2. The new series of National Income Accounts has revised the base year from 2004-05 to 2010-11.

3. Individual Industry wise estimate will be presented as Gross Value Added (GVA) at basic prices.

4. IMF and WTO also provide projected growth for India.

Which of the above statements is/are incorrect?

• A. 1 and 2 only
• B. 1, 2 and 4 only
• C. 1, 3 and 4
• D. All of these

Answer 1

The correct option is B

1, 2 and 4 only

GDP at Market Price will define the GDP of the nation. New series revised the base year from 2004-05- to 2011-12.

Though IMF and World Bank provide projected growth estimate for India but WTO do not do so. Thus statements 1, 2 and 4 are incorrect only 3^rd statement is correct.

Details:- On January 30, 2015 the CSO released a new GDP series that entailed shifting the base year from 2004-05 to 2011-12. Last time the base year was shifted in 2010.

Apart from shifting base year. It also deployed improved methodologies in the estimation of GDP

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