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Economy

GDP for 2010-11 at 8.5%, Q4 at 7.8%

The latest GDP estimate from MOSPI came in.

Nominal growth – what actually happened: 20.2%

Real growth (nominal minus inflation, rolled up): 8.8%

There are a lot of GDP numbers.

1) At 2004-05 (“constant”) prices: Numbers that remove the impact of inflation. This is removed at an item level and then scaled up. So the constant

2) At Market Prices: At current prices. This is the GDP in rupees that were actually spent and contains the inflationary impact embedded within.

3) At Factor Cost: This is the GDP minus indirect taxes plus subsidies.

Very complex it is. But it makes sense to take the Factor Cost GDP because everyone’s using that (except the IMF). For the record, the GDP at Market Prices grew 8.8% for FY 2011.

For Q4, 2011, results weren’t quite as impressive.

Q4 GDP growth at factor cost: 7.8% (lowest in five quarters)

Q4 GDP growth at market prices: 17.2% (again, lowest in five quarters)

More charts etc. later.