Transfer Payments:
- One-way payment of money for which no money or service is received in exchange.
- Not considered subsidies, as subsidies are linked to economic transactions.
- Direct Benefit Transfers (DBT) are not classified as transfer payments because they are part of GDP.
GDP and GNP:
- GDP = Gross Value Added (GVA) + Indirect Tax – Subsidy.
- GNP = Gross Domestic Product (GDP) + Net Factor Income from Abroad (NFIA).
Differences Among GVA @ Basic Price, GVA @ Factor Cost, and GDP @ Market Price:
- GVA @ Basic Price:
- Includes: Production taxes.
- Excludes: Production subsidies.
- GVA @ Factor Cost:
- Excludes: All taxes (production and product taxes).
- Includes: All subsidies (production and product subsidies).
- GDP @ Market Price:
- Includes: Both production and product taxes.
- Excludes: Both production and product subsidies.
GDP and GVA
GDP- Involves Product tax and subsidies
GVA- Involves Production tax and subsidies
India’s National Income Statistics:
- Organizations Responsible:
- The Central Statistical Office (CSO) and Ministry of Statistics and Programme Implementation (MOSP&I) are responsible for compiling the National Accounts Statistics (NAS).
- At the state level, the State Directorate of Economics and Statistics (DES) handles State Domestic Product (SDP) and other related statistics.
- CSO’s Role:
- Provides GDP estimates.
- Publishes Advanced Estimates (AE) two months prior to the closing of the current financial year.
New GDP Series 2015 by CSO:
- Adoption of International Standards:
- Based on the recommendations of the System of National Accounts, 2008 (UN) to align figures with international standards.
- Key metrics:
- GVA at Basic Price.
- GDP at Market Price.
- Two Major Changes:
- Base Year Change: Shifted to 2011-12, incorporating the NSSO Employment-Unemployment (E-UE) survey for better representation of the unorganized sector.
- GDP Calculation Method: Transitioned from Factor Cost (FC) to Market Price (MP).
Comparison of Old Series and New Series GDP Parameters:
| Parameter | Old Series | New Series |
|---|---|---|
| Headline GDP | GDP @ Factor Cost | GDP @ Market Price |
| Preference | Producer-end (prices received by producer) | Consumer-end (market prices paid by consumers) |
| Data | – Production cost | – Production cost |
| – Selling and marketing costs NOT included | – Selling and marketing costs included | |
| – Govt earnings (tax subsidies) NOT included | – Earnings from indirect taxes (after deducting subsidies) INCLUDED | |
| Method to Cover Informal Sector | Labor Input method: treats all labor equally | Effective Labor Input method: assigns weights to different categories of workers |
| Value Addition in Agriculture | Farm Produce | Farm Produce + Livestock + Other Activities |
| Income from Financial Sector | Limited to banking, insurance, and some NBFCs | Includes stock brokers, stock exchanges, AMCs, regulatory bodies (PFRDA, SEBI), and more |
Back Series GDP Estimates:
- Method Used: Slicing method.
- Advisory Body: National Statistical Commission advises the Ministry of Statistics and Programme Implementation (MoSPI).
- Official Status: Estimates in the report are not official.
- Released By: Central Statistical Office (CSO) and NITI Aayog.
Global Hunger Index (GHI):
- Prepared By: Welthungerhilfe and Concern Worldwide.
- Indicators Used:
- Undernourishment.
- Wasting in children under 5.
- Stunting in children under 5.
- Under-5 mortality rate.
Social Progress Index (SPI):
- Prepared By: Non-profit organization Social Progress Imperative.
- Key Parameters:
- Basic Human Needs.
- Foundations of Well-Being.
- Opportunity.
National Resource Accounting (NRA):
- Also Known As: National Capital Accounting.
- Definition: A process of calculating the total stocks and flows of natural resources and ecosystem services.
- India’s Commitment: Declared adoption of NRA at the Nagoya Meeting in 2010.
- Global Adoption: Adopted by the UN’s System of Environmental-Economic Accounting (SEEA) in 2012.
Environmental Performance Index (EPI):
- Prepared By:
- Yale Center for Environmental Law and Policy (YCELP).
- Columbia University.
- World Economic Forum (WEF).
- Joint Research Centre of the European Commission (JRCEC).
- Ranking Focus:
- Protection of Environmental Health.
- Protection of Ecosystems.
- Report Title: Global Metrics for Environment.
Least Developed Countries (LDCs):
- Criteria:
- Poverty: Per capita income below $1,035.
- Human Resource Weakness: Indicators like health, education, and literacy.
- Economic Vulnerability: Assessed on the resilience and stability of the economy.
- Review Process: Criteria are reviewed every three years by the Committee on Development Policy of UN ECOSOC (United Nations Economic and Social Council).
