The Reserve Bank of India switched back to the gross domestic product (GDP)-based measure to offer its growth estimates from the gross value added (GVA) methodology, citing global best practices. The government had started analysing growth estimates using GVA methodology from January 2015 and had also changed the base year to 2018 from January.
While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP model gives the picture from the consumers’ side or demand perspective.
Source- The Hindu
Static/Current Takeaways Important for NABARD Grade-A Exam 2018-
- Urjit Patel- 24th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.