Economics • Indian EconomyMedium
What structural change was introduced in the computation of India's national accounts with the adoption of the 2011-12 base year series by the Central Statistics Office?
A. Transitioning from Gross Domestic Product at factor cost to Gross Value Added at basic prices for sectoral output measurement✓ Correct Answer
B. Excluding all service sector contributions from national income calculations to focus exclusively on manufacturing
C. Measuring gross domestic product entirely in foreign currencies using purchasing power parity exchange rates
D. Abolishing the estimation of unorganized sector output in favor of corporate tax returns
💡 Solution & Explanation
With the 2011-12 base year revision, India aligned its national accounts with international standards by adopting Gross Value Added at basic prices to measure sectoral output, while Gross Domestic Product is obtained by adding product taxes and subtracting product subsidies. This approach provides a clearer picture of production costs and value additions across industries. The Ministry of Statistics and Programme Implementation oversees these revisions.
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