All is not quite correct with GDP numbers for FY24

Discrepancies in computation of advance estimates of the country's Gross Domestic Product for 2023-24 stood at Rs 2.59 lakh crore as against (-) Rs 3.80 lakh crore in 2022-23 and (-) Rs 4.47 lakh crore in 2021-22, according to National Statistical Office (NSO).

On Friday, the NSO released its first advance estimates of national accounts which showed that the Gross Domestic Product (GDP) or Indian economy will grow at 7.3 per cent in 2023-24, slightly higher than 7.2 per cent in 2022-23.

According to data, there were discrepancies of Rs 2.59 lakh crore as against (-) Rs 3.80 lakh crore in 2022-23 and (-) Rs 4.47 lakh crore in 2021-22.

Discrepancies in the statistical GDP data refer to the difference in national income under production method and expenditure method.

According to experts, there will always be some discrepancies in national accounts because of delay in reporting of information by various agencies including state governments.

About the high level of discrepancies in the national accounts data for current fiscal, experts are of the view that discrepancies are shown to report data as accurately as possible.

However, they say that the government make all efforts to reduce discrepancies.

There are three methods of computation of national income namely, production, expenditure and income.

The NSO's first estimates of national accounts for this fiscal also showed that the country's gross value added (GVA) will grow at 6.9 per cent 2023-24, lower than 7 per cent in 2022-23.

However, the GDP growth is pegged at 7.3 per cent this fiscal, higher than 7.2 per cent in 2022-23.

The GDP (Gross Domestic Product) is GVA plus net of taxes.

The computation of national accounts assumes significance in view of evidence based policy making in the country.