A short note on the Indian Growth rate calculated at factor cost

November 13, 2013 | Posted by bobbysrinivasan << back to blog

RBI has conveniently classified and computed growth by sector using 2004-05 factor cost

Let us look at them

Amount Produced (in crores of Rupees)

2011-12 2012-13

Total 5243, 582 5503, 476

5503476

Growth rate ———— = 1.04956 4.956% is t

5242582

Note

Our GDP in 2012-13 is 55.03476 trillion Rs or 5503476 lac crore Rs
The finance ministry is predicting 5.5% growth for 2013-14 i.e. 55.03476 x (11.055) = 58.06167 trillion Rs
The IMF is predicting 3.8% growth for 2013-14 i.e. 55.03476 x 1.038 = 57.12608 trillion Rs

A difference 0.93559 trillion Rs.

We will have to wait and see about how successful their projections are.

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