First advance estimates of national income released by the National Statistical Office (NSO)

Context: India’s real GDP growth in 2023-24 is estimated at 7.3%, compared to 7.2% a year ago, as per the first advance estimates of national income released by the National Statistical Office (NSO), which reckon the economy will outperform the 7% uptick recently projected by the Reserve Bank of India (RBI).

About NSO (National Statistical Office):

Role and Affiliation: The NSO serves as the central agency within the Ministry of Statistics and Programme Implementation, overseeing the planned development of the statistical system in the country. It establishes and upholds norms and standards related to statistics, encompassing concepts, definitions, methodology for data collection, data processing, and the dissemination of results.

Components:

The NSO comprises three main entities:

• Central Statistical Office (CSO)
• Computer Center
• National Sample Survey Office (NSSO)

Functions:

• Index of Industrial Production (IIP): The NSO is responsible for compiling and releasing the Index of Industrial Production on a monthly basis, providing 'quick estimates' regularly.
• Annual Survey of Industries (ASI): It conducts the Annual Survey of Industries to gather comprehensive statistical information.
• Statistical Information: The NSO offers statistical data that aids in assessing and evaluating changes within the growth, composition, and structure of the organized manufacturing sector.

Gross Domestic Product (GDP):

GDP serves as a monetary metric for the total value of all "final" goods and services within a country during a specific period. These are the goods and services ultimately purchased by the end-user.

Four Key Drivers of GDP Growth:

Private Final Consumption Expenditure (PFCE): Represents the money spent by individuals on private consumption.

Government Final Consumption Expenditure (GFCE): Encompasses all expenditures made by the government on its current consumption, such as salaries.

Gross Fixed Capital Expenditure: Involves all investments made to enhance the economy's productive capacity, including business investments in facilities and government projects like infrastructure development.

Net Exports (NX): Captures the net impact of exports (foreign spending on domestic goods) and imports (domestic spending on foreign goods).

GDP Calculation Formula: GDP = Private Consumption + Gross Investment + Government Investment + Government Spending + (Exports − Imports)