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GDP growth pegged at 7.1%, belying demonetisation drag (Relevant for GS Prelims and GS Mains Paper III)

Improved estimate in net indirect taxes helped maintain GDP, says CSO
The Central Statistics Office (CSO) has kept its January estimate for growth in gross domestic product (GDP) in 2016-17 unchanged at 7.1%, signalling that independent economic forecasters may have overstated the drag on the economy from the November withdrawal of high-value currency notes.

The CSO, which released its second advance estimates of economic growth, also provided GDP and Gross Value Added (GVA) figures for the third quarter, which showed GDP growth slowing to 7%, from 7.3% in the second quarter of the financial year.

The Election Commission had barred CSO from releasing State-specific data on economic growth projections, in view of the ongoing Assembly elections. The Commission gave a clearance to the release of only national level data.

What is GDP?
Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly), in an area.

What is Gross Value Added?
Gross value added (GVA) is the measure of the value of goods and services produced in a period (quarterly or yearly), in an area.
GDP – Indirect Taxes + Subsidies = GVA



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