GROUP MEMBERS:

Sanchari Pait: 19020841139

Shradha Chhetri 19020841146
Supriya Nair: 19020841133
Avinash Somjani: 19020841112
Sukant Goyal: 19020841150
Divyasha Dhubkarya: 19020841123

MACROECONOMICS ASSIGNMENT
Industry:
Agriculture, Forestry & Fishing
1) CROP

Method of estimation: QGVA is estimated separately for (a) Principal Crops for which quarterly production
data is available. The commodity-level value of output for the reference quarter is estimated by extrapolating
the estimated commodity-level value of output at constant prices of the same quarter of the previous year
with the growth in production of particular commodity during reference quarter (b) Other crops for which
quarterly production data is not available, the annual estimate is prepared using log-linear estimation or
targets announced by the Ministry of Agriculture. The annual estimated production of such crops is equally
apportioned between quarters. Input: Previous years’ input output ratio GVA = Output-Input

2) Livestock

Method of estimation: In the case of livestock products, quarterly estimates of production are available for
four major items, namely, milk, egg, meat and wool, from the Department of Animal Husbandry and Dairying,
Ministry of Agriculture. These estimates are compiled through special tabulations of the questionnaires on
annual Integrated Sample Survey. This survey is conducted in three seasons, namely, summer, rainy and
winter, primarily to estimate the yield rates of production per different categories/ages/breeds of animals.
This season-wise data which is available with a time lag is used for compiling quarterly estimates. Hence,
using growth in production as reflected in the annual Targets/ projections of major livestock products annual
GVA estimates are first compiled. These estimates are apportioned among quarters on the basis of latest
available quarterly distribution. In the case of other livestock products for which targets or production data
is not available, previous year’s value of output is extrapolated to the current year on the basis of log-linear
estimation technique. The annual estimate is apportioned equally between quarters. Input: Previous years’
input output ratio GVA = Output-Input

3) Forestry

Items included in Forestry are Industrial Wood, Timber from Trees

Outside Forest, Firewood, NTFP
Method of estimation: Previous year’s value of output of industrial wood, fuelwood and minor forest
products is extrapolated to the current year on the basis of past growth trends. This annual estimated figure
is apportioned equally to the four quarters of the year. The estimates of input are derived on the basis of
previous year’s input-output ratio. GVA=Output– Input

4) Fishery

Main Components of GVO Fishery are Inland fish and Marine fish

Method of estimation: The quarterly value of output for the reference quarter is estimated by extrapolating
the estimated output at constant prices of the same quarter of the previous year with the quarterly
production growth. Input: Previous years’ input output ratio GVA=Output– Input

Total GVA of Agriculture and Allied Sectors is 1) + 2) +3) + 4)

Mining & Quarrying

Method of estimation: The quarterly production data in respect of coal, crude petroleum, natural gas and
the IIP for mining sector are used to extrapolate the value of output of coal, crude petroleum and other
major and minor minerals of the same quarter of the previous year (excluding output in the private
corporate sector which is estimated separately) Quarterly GVA of Private corporate sector of this industry
in the previous year is extrapolated by quarterly growth observed in the indicator based on Staff costs,
Profit before tax and depreciation worked out from quarterly financial results of listed companies
obtained from BSE/NSE. As growth estimated for private corporate sector is in nominal terms, they are
deflated by using appropriate WPI. Inputs: Input-output ratios of the previous year are used separately
for fuel minerals and other minerals. GVA=GVO-GVI

Manufacturing
Organized Manufacturing

Activities Included in organized manufacturing are:-

Unorganized Manufacturing

Activities Included in unorganized manufacturing are:-

 Method of Calculation: For the organized sector, value added in the reference quarter is estimated by
extrapolating the estimated GVA in same quarter of previous year with quarterly growth observed in the
indicator based on Staff costs, Profit before tax and depreciation worked out from quarterly financial
results of listed companies from BSE/NSE. The private corporate sector estimates which are in nominal
terms are distributed across different compilation categories as per the latest available ASI results. These
estimates are then deflated by using appropriate WPI for different compilation categories. Quasi
corporate and unorganized sector The value added at 2- digit level (NIC)for the reference quarter is
estimated by extrapolating the estimated value added at 2-digit level at constant prices of the same
quarter of the previous year with the growth observed in IIP for manufacturing sector at 2-digit level
during reference quarter. The quarterly value added is the sum of value added estimated at 2-digit level.

Industry:
Agriculture, Forestry & Fishing
5) CROP
Method of estimation: QGVA is estimated separately for (a) Principal Crops for which quarterly production
data is available. The commodity-level value of output for the reference quarter is estimated by extrapolating
the estimated commodity-level value of output at constant prices of the same quarter of the previous year
with the growth in production of particular commodity during reference quarter (b) Other crops for which
quarterly production data is not available, the annual estimate is prepared using log-linear estimation or
targets announced by the Ministry of Agriculture. The annual estimated production of such crops is equally
apportioned between quarters. Input: Previous years’ input output ratio GVA = Output-Input

6) Livestock
Method of estimation: In the case of livestock products, quarterly estimates of production are available for
four major items, namely, milk, egg, meat and wool, from the Department of Animal Husbandry and Dairying,
Ministry of Agriculture. These estimates are compiled through special tabulations of the questionnaires on
annual Integrated Sample Survey. This survey is conducted in three seasons, namely, summer, rainy and
winter, primarily to estimate the yield rates of production per different categories/ages/breeds of animals.
This season-wise data which is available with a time lag is used for compiling quarterly estimates. Hence,
using growth in production as reflected in the annual Targets/ projections of major livestock products annual
GVA estimates are first compiled. These estimates are apportioned among quarters on the basis of latest
available quarterly distribution. In the case of other livestock products for which targets or production data
is not available, previous year’s value of output is extrapolated to the current year on the basis of log-linear
estimation technique. The annual estimate is apportioned equally between quarters. Input: Previous years’
input output ratio GVA = Output-Input

7) Forestry

Items included in Forestry are Industrial Wood, Timber from Trees

Outside Forest, Firewood, NTFP
Method of estimation: Previous year’s value of output of industrial wood, fuelwood and minor forest
products is extrapolated to the current year on the basis of past growth trends. This annual estimated figure
is apportioned equally to the four quarters of the year. The estimates of input are derived on the basis of
previous year’s input-output ratio. GVA=Output– Input

8) Fishery
Main Components of GVO Fishery are Inland fish and Marine fish

Method of estimation: The quarterly value of output for the reference quarter is estimated by extrapolating
the estimated output at constant prices of the same quarter of the previous year with the quarterly
production growth. Input: Previous years’ input output ratio GVA=Output– Input

Total GVA of Agriculture and Allied Sectors is 1) + 2) +3) + 4)

Mining & Quarrying

Method of estimation: The quarterly production data in respect of coal, crude petroleum, natural gas and
the IIP for mining sector are used to extrapolate the value of output of coal, crude petroleum and other
major and minor minerals of the same quarter of the previous year (excluding output in the private
corporate sector which is estimated separately) Quarterly GVA of Private corporate sector of this industry
in the previous year is extrapolated by quarterly growth observed in the indicator based on Staff costs,
Profit before tax and depreciation worked out from quarterly financial results of listed companies
obtained from BSE/NSE. As growth estimated for private corporate sector is in nominal terms, they are
deflated by using appropriate WPI. Inputs: Input-output ratios of the previous year are used separately
for fuel minerals and other minerals. GVA=GVO-GVI

Manufacturing
Organized Manufacturing

Activities Included in organized manufacturing are:-

Unorganized Manufacturing

Activities Included in unorganized manufacturing are:-

Method of Calculation: For the organized sector, value added in the reference quarter is estimated by
extrapolating the estimated GVA in same quarter of previous year with quarterly growth observed in the
indicator based on Staff costs, Profit before tax and depreciation worked out from quarterly financial
results of listed companies from BSE/NSE. The private corporate sector estimates which are in nominal
terms are distributed across different compilation categories as per the latest available ASI results. These
estimates are then deflated by using appropriate WPI for different compilation categories. Quasi
corporate and unorganized sector The value added at 2- digit level (NIC)for the reference quarter is
estimated by extrapolating the estimated value added at 2-digit level at constant prices of the same
quarter of the previous year with the growth observed in IIP for manufacturing sector at 2-digit level
during reference quarter. The quarterly value added is the sum of value added estimated at 2-digit level.

GVA = GVO - GVI

TRADE, HOTEL, TRANSPORT, COMMUNICATION AND SERVICES
RELATED TO BRAODCASTING

Estimates of GVA of ‘Trade, repair, hotels and restaurants’ for the year 2011-12
GVA from Railways

GVA from ‘Transport by means other than railways’, storage and ‘communication & services related to
broadcasting’ at current prices, 2011-12

FINANCIAL, REAL ESTATE AND PROFESSIONAL SERVICES

REAL EASTATE
SERVICES
GVA from ‘Other Services’ at current prices, 2011-12

References:
http://mospi.nic.in/sites/default/files/press_releases_statements/Methodology_doc_for_compilation_o
f_Quarterly_GDP_28july17.pdf
 QUARTERLY EXPENDITURES

The expenditure aggregates of GDP comprise of consumption expenditure (government final

consumption expenditure and private final consumption expenditure), gross fixed capital formation, and
changes in stocks, valuables, and net exports (exports minus imports). These estimates are compiled at
market prices.

COMPONENTS UNDER EXPENDITURE SIDE OF GDP

1. PRIVATE FINAL CONSUMPTION EXPENDITURE (PFCE)
1. Food and non-alcoholic beverages
2. Alcoholic beverages, tobacco and narcotics
3. Clothing and footwear
4. Housing, water, electricity, gas and other fuels
5. Furnishings, household equipment and routine household maintenance
6. Health
7. Transport
8. Communication
9. Recreation and culture
10. Education

2. GOVERNMENT FINAL CONSUMPTION EXPENDITURE (GFCE)

Government final consumption expenditure (GFCE) is an aggregate transaction amount on a
country's national income accounts representing government expenditure on goods and
services that are used for the direct satisfaction of individual needs or collective needs of
members of the community.

 Defense Expenditure

 Population Growth
o Education
o Infrastructure

 Welfare Activities
o Provision for public and utility services.
o Accelerating economic growth
o Price rise
o Increase in public revenue
o International Obligation

 Wars and social crisis

 Foreign Aids

3. GROSS FIXED CAPITAL FORMATION

 https://tradingeconomics.com/india/gross-fixed-capital-formation

4. CHANGE IN STOCKS

Change in Stocks of Inventories are the book value change in stocks for corporations.
1. Public Non- Financial Corporations
2. Private Non-Financial Corporations
3. Public Financial Corporation
4. Private Financial Corporation
5. General Government
6. Households including NPISH

5. VALUABLES
Data on expenditures made on net acquisition of valuables on precious items like
gold, gems, ornaments and precious stones etc., has been included under GCF, as a
separate category (separately from the GFCF and Change in Stocks) as in the old series.
In the new series, valuables include HS codes 7108 (gold), 7106 (silver), 7113 and 7114
(gold and silver ornaments), precious articles with HS codes 710231 (diamonds), 7103
(other gems and stones), and 711019 (platinum).

6. EXPORTS
Exports are the goods and services sent to another country for sale.

Mineral fuels including oil: US$48.3 billion (14.9% of

total exports)
Gems, precious metals: $40.1 billion (12.4%)
 Machinery including computers $20.4 billion (6.3%)
Vehicles: $18.2 billion (5.6%)
Organic chemicals: $17.7 billion (5.5%)
Pharmaceuticals: $14.3 billion (4.4%)
Electrical machinery, equipment $11.8 billion (3.6%)
Iron, steel $10 billion (3.1%)
Cotton, Clothing, accessories $8.1 billion (2.5%)

http://www.worldstopexports.com/indias-top-10-exports/

7. IMPORTS

Imports are the goods and services that a country buys from another country.

1. Mineral fuels including oil: US$168.6 billion (33.2% of total imports)

2. Gems, precious metals: $65 billion (12.8%)
3. Electrical machinery, equipment: $52.4 billion (10.3%)
4. Machinery including computers: $43.2 billion (8.5%)
5. Organic chemicals: $22.6 billion (4.4%)
6. Plastics, plastic articles: $15.2 billion (3%)
7. Iron, steel: $12 billion (2.4%)
8. Animal/vegetable fats, oils, waxes: $10.2 billion (2%)
9. Optical, technical, medical apparatus: $9.5 billion (1.9%)
10. Inorganic chemicals: $7.3 billion (1.4%)

8. DISCREPANCIES
There are 3 methods of calculating national income- value added method, income
method and Expenditure method. Logically, the GDP calculated from these methods
should be the same. But, usually, they aren't the same. Discrepancy is therefore a residual
entry. Discrepancies range from 0.1% to 1% in developed countries and it’s more for
developing countries. It creates a problem since the higher the discrepancies are, the
more difficult to believe in the data. The discrepancies cover 0.1% of GDP at constant
prices.