Not just GDP, estimates for GVA are also weak

New Delhi: The current growth slowdown is reflected not just in the first advance estimates of GDP growth in fiscal 2020 pegged at 5 per cent, but also in the estimate of gross value added (GVA) pegged at 4.9 per cent.

Asc per official estimates, GVA, which is GDP minus net taxes, is expected to grow at 4.9 per cent in 2019-20 compared to 6.6 per cent a year ago. GVA is a more realistic guide to measure changes in the aggregate value of goods and services produced in an economy.

The estimates are based on the growing numbers of the first two-quarters of the current fiscal as well as other higher frequency data.

India’s gross fixed capital formation has been estimated at 1 per cent, against the 10 per cent of the previous year.

According to the Statistics Ministry data, while private final consumption expenditure (PFCE) in 2019-20 may grow at 5.8 per cent, against 8.1 per cent in fiscal 2019, the gross fixed capital formation (GFCF) - a metric to measure corporate investment activity - is expected to come in at 1 per cent against 10 per cent in the previous year. (IANS)

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