Understanding GDP and GVA…


The Central Statistics Office (CSO) released estimates for GDP for 2015-16 last week, which recorded growth of 7.6% (at constant prices), the best in four years. The quarterly number at 7.9% is second best in last eight quarters.

Real GDP (at 2011-12 prices) for FY16 is estimated at Rs 113.5 lakh crore, not an easy number to visualize. While this number is only about fifty times the sales of Reliance Industries, it must be noted that GDP is based on the value addition and not on sales which would be much less (may be about 15%) for RIL also. So, Indian GDP is made up of about 300 Reliance Industries..!

However, it is lot more complex than that simple comparison. Here is a brief attempt to explain GDP, GVA and other complex terminologies. Please open the PDF.  GDP FY16

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