Related Topic in KAS Prelims Syllabus:
Economy [Paper-II]: National Income and Per Capita Income
- National Statistical Office (NSO), Ministry of Statistics and Programme Implementation has released the First Advance Estimates of National Income at both Constant (2011-12) and Current Prices, for the financial year 2019-20 along with the corresponding estimates of expenditure components of the Gross Domestic Product (GDP).
- It was released in accordance with the release calendar of National Accounts.
- The approach for compiling the Advance Estimates is based on Benchmark-Indicator method.
Gross Domestic Product
- Real GDP or GDP at Constant Prices (2011-12) in the year 2019-20 is likely to attain a level of 147.79 lakh crore, as against the Provisional Estimate of GDP for the year 2018-19 of Rs. 140.78 lakh crore.
- The growth in real GDP during 2019-20 is estimated at 5.0 per cent as compared to the growth rate of 6.8 per cent in 2018-19.
- GDP at Current Prices in the year 2019-20 is likely to attain a level of 204.42 lakh crore, as against Rs. 190.10 lakh crore in 2018-19 showing a growth rate of 7.5 per cent.
Gross Value Added (GVA) at Basic Prices
- Real GVA at Basic Prices is estimated to increase from 129.07 lakh crore in 2018-19 to Rs. 135.40 lakh crore in 2019-20.
- Estimated growth of real GVA in 2019-20 is 4.9 per cent as against 6.6 per cent in 2018-19.
- The sectors which registered growth rate of over 4.9 percent are, ‘Electricity, Gas, Water Supply and Other Utility Services’, ‘Trade, Hotels, Transport, Communication and Services related to Broadcasting’, ‘Financial, Real Estate and Professional Services’ and ‘Public Administration, Defence and Other Services’ at 5.4 per cent, 5.9 per cent, 6.4 per cent, 9.1 per cent respectively.
- The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Manufacturing’ and ‘Construction’ is estimated to be 2.8 per cent, 1.5 per cent, 2.0 per cent and 3.2 per cent respectively.
- The nominal Net National Income (NNI), also known as National Income (at Current Prices) is likely to be 181.10 lakh crore during 2019-20, as against Rs. 168.37 lakh crore for the year 2018-19.
“In terms of growth rates, the National Income registered a growth rate of 7.6 per cent in 2019-20 as against the previous year’s growth rate of 11.3 per cent”
Per Capita Income
“The Per Capita Net National Income during 2019-20 is estimated to be Rs. 1,35,050 showing a rise of 6.8 per cent as compared to Rs. 1,26,406 during 2018-19 with the growth rate of 10.0 per cent”
Private Final Consumption Expenditure (PFCE)
In terms of GDP, the rates of PFCE at Current and Constant (2011-12) Prices during 2019-20 are estimated at 60.2 per cent and 57.4 per cent, respectively, as against the corresponding rates of 59.4 per cent and 56.9 per cent, respectively in 2018-19.
Government Final Consumption Expenditure (GFCE)
In terms of GDP, the rates of GFCE at Current and Constant (2011-12) prices during 2019-20 are estimated at 11.9 per cent and 11.3 per cent, respectively, as against the corresponding rates of 11.2 per cent and 10.7 per cent, respectively in 2018-19.
Gross Fixed Capital Formation
- In terms of GDP, the rates of GFCF at Current and Constant (2011-12) prices during 2019-20 are estimated at 28.1 per cent and 31.1 per cent, respectively, as against the corresponding rates of 29.3 per cent and 32.3 per cent, respectively in 2018-19.
- Gross fixed capital formation, a measure of investments, is estimated to rise less than 1% in FY20, a collapse from near 10% rise in FY19.