India's National Income Estimates (based on NSO's First Advance Estimates for 2023-24 released on Jan 5, 2024): part 20

 Okay, here are the key notes from the video on India's National Income Estimates (based on NSO's First Advance Estimates for 2023-24 released on Jan 5, 2024):

I. Introduction & Context

1. Data Source: National Statistical Office (NSO) releases National Income statistics (since 2019).

2. Release Discussed: First Advance Estimates (FAE) for the Financial Year 2023-2024, released on January 5, 2024.

3. Nature of FAE: These are advance estimates released before the financial year (Apr 1 - Mar 31) ends, based primarily on data from the first three quarters (Q1, Q2, Q3).

4. Pricing Basis: Data is presented at both Current Prices and Constant Prices (Base Year: 2011-12).

5. Measurement: Primarily uses Market Prices (MP) as recommended, not Factor Cost (FC).

II. Key Aggregates (2023-24 FAE)

• A. At Current Prices: (Includes inflation effect)

  • GDP: ₹296.58 lakh crore (Approx. ₹300 lakh crore) (5:10, 5:21)

  • NNP: ₹259.26 lakh crore (Approx. ₹260 lakh crore) (5:42, 5:46)

  • Per Capita NNP (2022-23 Actual): ₹1,85,854 (Note: 2023-24 figure not explicitly stated clearly in audio for current prices, 15:38)

  • GDP Growth Rate: 8.9% (13:36)

  • NNP Growth Rate: 8.9% (13:38)

  • Caution: Speaker advises focusing less on current price growth rates as they don't reflect real growth (12:22-13:12).

• B. At Constant Prices (Base Year: 2011-12): (Reflects real growth, adjusted for inflation - More Important for Analysis)

  • GDP: ₹171.79 lakh crore (22:24)

  • NNP: ₹145.89 lakh crore (Approx. ₹146 lakh crore) (26:48)

  • GDP Growth Rate: 7.3% (Previous Year: 7.2%) (28:02, 28:47) - VERY IMPORTANT (30:34)

  • NNP Growth Rate: 7.2% (Previous Year: 7.0%) (28:11)

  • Per Capita GDP: ₹1,23,144 (31:39) - IMPORTANT (32:08)

  • Per Capita NNP: ₹1,04,589 (Approx. ₹1.05 lakh) (32:30, 32:48) - IMPORTANT (32:08)

  • Per Capita GDP Growth Rate: 6.4% (34:23) - VERY IMPORTANT (34:29)

  • Per Capita NNP Growth Rate: 6.3% (34:50)

III. Key Concepts & Comparisons

1. Current vs. Constant Prices: Current price figures are higher due to inflation; Constant price figures show real volume increase. Constant prices are better for assessing economic development (21:23-21:45).

2. GDP vs. GNP (India): GDP > GNP. This implies Net Factor Income From Abroad (NFIA) is negative – foreigners earn more in India than Indians earn abroad (7:02-8:34).

3. Gross vs. Net: Gross figures are higher than Net figures (Gross - Depreciation = Net).

4. Market Price vs. Factor Cost: NSO uses Market Prices. MP figures are generally used unless specified otherwise (11:12-11:53).

IV. Sectoral Growth Rates (Constant Prices, 2023-24 FAE) - VERY IMPORTANT (35:24)

1. Highest Growth: Construction - 10.7% (36:37)

2. Second Highest: Financial, Real Estate & Professional Services - 8.9% (37:57)

3. Lowest Growth: Agriculture, Forestry & Fishing - 1.8% (36:11) (Concern expressed - 36:15)

4. Manufacturing: 6.5% (Important sector - 37:12) (37:04)

V. Exam Focus Summary

• Know the GDP Growth Rate (Constant Prices): 7.3%.

• Know the Per Capita Income (NNP or GDP) Growth Rate (Constant Prices): ~6.3-6.4%.

• Be familiar with absolute GDP/NNP figures (Constant Prices primarily).

• Be familiar with Per Capita NNP/GDP figures (Constant Prices primarily).

• Understand why Constant Prices are used for real growth analysis.

• Identify Highest (Construction) and Lowest (Agriculture) growing sectors.

• Understand GDP > GNP relationship in India.

• Know the releasing agency (NSO) and Base Year (2011-12).

VI. Future Updates

• Second Advance Estimates, Revised Estimates etc., are expected around Feb 28th (38:54, 39:00).

• Final data comes later after the financial year ends. Current estimates are based on available data and projections.