India’s economic growth could outpace earlier estimates as the government prepares to unveil a revised framework for calculating Gross Domestic Product (GDP), reflecting structural changes in the economy over the past decade.
On Friday, authorities will shift the GDP base year to 2022-23 from 2011-12 and release advance estimates for the financial year ending March. According to a Bloomberg survey of economists, growth may be revised to 7.6% for the current financial year, higher than the 7.4% projection issued in January under the previous series.
The goal of the rebasing exercise is to modify the weight of traditional industries like agriculture and informal manufacturing while better capturing emergent sectors like gig work and the digital economy. The Reserve Bank of India’s future policy decisions may be influenced by the new statistics, according to economists.
Market observers will also evaluate whether the change speeds up India’s rise to become the fourth-largest economy in the world, surpassing Japan. Both GDP size and growth projections were considerably raised in 2015 by a similar revision.
The government is upbeat about development expectations despite the risks surrounding international trade, especially previous tensions with the US. Additionally, the new statistics will provide the first full-quarter evaluation in the wake of recent tax adjustments.
Source – The Economic Times
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