Growth in Gross Value Added of Indian Manufacturing

There has been criticism of the 2 percentage point hike in the 2013-14 real gross domestic product growth in the new National Accounts Statistics series and some observers have therefore been sceptical about the new series. There is, however, evidence that the growth rate in real gross value added of manufacturing in 2013-14 was probably about 5% or higher though it was reported as a negative 0.7% in the previous NAS series. Since manufacturing accounts for about 18% of GDP, more than half of the hike in the growth rate for 2013-14 between the two NAS series can therefore be explained in terms of a required correction in industrial growth rate estimates.