The Second Advance Estimates (SAE) of GDP are crucial government-issued figures providing insights into India's economic output for the ongoing fiscal year. Released in February, these estimates refine the earlier First Advance Estimates (FAE) by incorporating data from the third quarter, covering October to December.
The FAE, published in January, are based on the data collected from the first two quarters, from April to September. The inclusion of the third quarter's data in the SAE makes them more comprehensive and refined compared to the FAE.
Although further refinements occur through provisional estimates (PE) in May and first revised estimates (FRE) in February of the following year, the SAE serve as a vital resource for policymakers. They provide the most current data, assisting in informed economic planning and decision-making.
Nominal GDP encompasses the total value of goods and services, factoring in inflation. This metric is pivotal for financial assessments such as calculating the fiscal deficit, which is expressed as a percentage of nominal GDP.
According to the latest data, the nominal GDP stands at ₹295.4 lakh crore, with a growth rate of 9.6%.
Real GDP provides a clearer picture of economic output by adjusting for inflation, reflecting actual growth in goods and services. The current estimates reveal a real GDP of ₹173.8 lakh crore, growing at 8.2%.
Per Capita GDP offers an average income figure per individual, which, while not indicative of income distribution, helps gauge overall economic health. The latest figures show a per capita GDP of ₹2,11,725, with an 8.6% growth rate.
India's GDP growth rate slowed to 5.4% in the second quarter, sparking concerns. The SAE helps analyze whether this slowdown is temporary or indicative of a longer-term trend.
Accurate economic data lays the groundwork for sound policy decisions and national progress, underscoring the importance of reliable GDP estimates.
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