India’s 2014-15 GDP growth rate pegged lower at 7.2%

The Indian economy grew at a slower pace of 7.2 per cent in the year ended 31 March 2015, against 7.3 per cent estimated earlier while growth rate for 2013-14 stood at 6.6 per cent against 6.9 per cent estimated earlier, the first revised estimate of national income for 2014-15 released by the Central Statistics Office (CSO) showed.

Pulled down by muted growth in farm, manufacturing, trade and financial services, India's gross domestic product (GDP) in real terms, or GDP at constant (2011-12) prices, stood at Rs1,05,52,000 crore during 2014-15, showing growth of 7.2 per cent while GDP for the year 2013-14 stood at Rs98,39,000 crore, showing a growth of 6.6 per cent.

Nominal GDP or GDP at current prices for the year 2014-15 is estimated at Rs1,24,88,000 crore while that for the year 2013-14 is estimated as Rs1,12,73,000 crore, showing growth rates of 10.8 per cent during 2014-15 as against 13.3 per cent during 2013-14.

In terms of Gross Value Added (GVA) at the aggregate level, real GVA, or GVA at basic constant (2011-12) basic prices, showed a growth of 7.1 per cent during 2014-15, as against a growth of 6.3 per cent in 2013-14. Nominal GVA at basic prices increased by 10.5 per cent during 2014-15, as against 12.7 per cent during 2013-14.

Growth in real GVA during 2014-15 has been higher than that in 2013-14 mainly due to higher growth in sectors like 'mining and quarrying' (10.8 per cent), 'electricity, gas, water supply and other utility services' (8.0 per cent), 'trade, repair, hotels and restaurants' (10.7 per cent), 'financial services' (7.9 per cent), 'public administration and defence' (9.8 per cent), and 'other services' (11.4 per cent).

In the primary sector (comprising agriculture, forestry, fishing and mining and quarrying), 'agriculture, forestry and fishing' has shown a decline of 0.2 per cent while 'mining and quarrying' increased by 10.8 per cent during 2014-15 as against the growth of 4.2 and 3.0 per cent, respectively, during the year 2013-14.

Growth in the secondary sector (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) stood at 5.4 per cent and that of tertiary (services) sector at 10.3 per cent during 2014-15, against a growth of 5.3 per cent and 7.8 per cent, respectively, in the previous year.

A more comprehensive picture of the economy will emerge on February 8, when the CSO releases the GDP data for the third quarter of 2015-16 as well as advance growth estimates for the current fiscal year.