Advance Estimates Of National

Income, 2005-06
Advance Estimates Of National Income, 2005-06

• The Central Statistical Organisation (CSO), Ministry of Statistics and Programme

Implementation was released here today the advance estimates of national
income at constant (1999-2000) and current prices, for the financial year 2005-06.

• These advance estimates are based on anticipated level of agricultural and industrial
production, analysis of budget estimates of government expenditure and performance of
key sectors like, railways, transport other than railways, communication, banking and
insurance, available so far. The advance estimates at current prices are derived by
estimating the implicit price deflators (IPDs) at sectoral level from the relevant price
indices. The salient features of these estimates are detailed below:

Estimates at Constant (1999-2000) Prices

Gross Domestic Product
• Gross Domestic Product (GDP) at factor cost at constant (1999-2000) prices in the year
2005-06 is likely to attain a level of Rs. 25,86,587 crore, as against the Quick Estimates of
GDP for the year 2004-05 of Rs. 23,93,671 crore, released on 31st January 2006. The
growth in GDP during 2005-06 is estimated at 8.1 per cent as compared to the growth rate
of 7.5 per cent during 2004-05.

• The growth rate of 8.1 per cent in GDP during 2005-06 has mainly been due to the growth
rates of over 5 per cent in the sectors of 'manufacturing', 'electricity, gas and water supply',
'construction', 'trade, hotels, transport and communication', 'financing, insurance, real
estate and business services', and 'community, social and personal services'.

Agriculture

• The 'agriculture, forestry and fishing' sector is likely to show a growth rate of 2.3
per cent in its GDP during 2005-06, as against the previous year's growth rate of 0.7 per
cent. Industry

• According to the latest estimates available on the Index of Industrial Production (IIP), the
index of mining, manufacturing and electricity registered growth rates of 0.6 per cent, 9.4
per cent and 4.9 per cent, respectively during April-November, 2005-06, as compared to
the growth rates of 5.1 per cent, 9.1 per cent and 6.6 per cent in these sectors during
April-November, 2004-05. The construction sector is expected to show a growth rate of
12.1 per cent during 2005-06, mainly on account of growth in production of 10.9 per cent
in cement and 7.1 per cent in steel during April-December 2005-06, as against the growth
rates of 6.9 per cent and 7.5 per cent, respectively during April-December, 2004-05.

Services
• The estimated growth in GDP for the trade, hotels, transport and communication sectors
during 2005-06 is placed at 11.1 per cent, mainly on account of a growth of 7.5 per cent in
the gross trading index, 5.3 per cent in net tonne kilometres of Railways and 10.8 per cent
in passenger kilometres of Railways, 10.9 per cent in cargo handled at major ports, 9.6 per
cent in the production of commercial vehicles, and 35.2 per cent in stock of telephone
connections, during April-November, 2005-06. The sector, 'financing, insurance, real estate
and business services', is expected to show a growth rate of 9.5 per cent during 2005-06,
on account of 18.9 per cent growth in aggregate deposits and 29.7 per cent growth in bank
credit during November 2004 to November 2005. The growth rate of 'community, social and
 personal services' during 2005-06 is estimated to be 7.9 per cent.

National Income
• The net national product (NNP) at factor cost, also known as national income, at 1999-2000
prices is likely to be Rs. 23,04,043 crore during 2005-06, as against the previous year's
Quick Estimate of Rs. 21,41,776 crore. In terms of growth rates, the national income is
expected to rise by 7.6 per cent during 2005-06 in comparison to the growth rate of 7.8 per
cent in 2004-05.

Per Capita Income

• The per capita income in real terms (at 1999-2000 prices) during 2005-06 is likely to attain
a level of Rs. 20,813 as compared to the Quick Estimate for the year 2004-05 of Rs.
19,649. The growth rate in per capita income is estimated at 5.9 per cent during 2005-06,
as against the previous year's estimate of 6.1 per cent.

Estimates at Current Prices

Gross Domestic Product
• GDP at factor cost at current prices in the year 2005-06 is likely to attain a level of Rs.
32,00,611 crore, showing a growth rate of 12.5 per cent over the Quick Estimates of GDP
for the year 2004-05 of Rs. 28,43,897 crore.

National Income
• The NNP at factor cost at current prices is anticipated to be Rs.28, 54,683 crore during
2005-06, as compared to Rs. 25,31,223 crore during 2004-05, showing a rise of 12.8 per
cent.

Per Capita Income

• The per capita income at current prices during 2005-06 is estimated to be Rs. 25,788 as
compared to Rs. 23,222 during 2004-05, showing a rise of 11.0 per cent.

• Estimates of gross/net national product, gross/net domestic product and per capita income
along with GDP at factor cost by kind of economic activity for the years 2004-05 and 2005-
06 at constant (1999-2000) and current prices are given in Statements 1 to 4.

STATEMENT 1: Advance Estimates of National Income for the year 2005-06

(At 1999-2000 prices)

Advance Estimates of National Income for the year 2005-06

2004-05(Quick 2005-06 (Advance
Item 2003-04
Estimate) Estimate)

ESTIMATES AT AGGREGATE
LEVEL

NATIONAL PRODUCT (Rs. Crore)

Gross national product (GNP) at 23,76,729

22,08,196 25,66,756(8.0)
Factor cost (7.6)

Net national product (NNP) at 21,41,776

19,86,858 23,04,043(7.6)
Factor cost (7.8)

DOMESTIC PRODUCT (Rs. crore)

Gross domestic product (GDP) 22,26,041 23,93,671 25,86,587

at 24,06,324 (7.5) (8.1)
Factor cost
2.2 Gross domestic product 26,11,511 28,34,271
(GDP) at (8.5) (8.5)
Market prices

Net domestic product (NDP) at 21,58,718 23,23,875

20,04,703
Factor cost (7.7 ) (7.7)

ESTIMATES AT PER CAPITA

LEVEL

1,090 1,107
Population (million) 1,073
(1.6) (1.7)

Per capita NNP at factor cost 19,649 20,813

18,517
(Rs.) (6.1) (5.9)

Note: The figures in parenthesis show the percentage change over previous year

STATEMENT 2: Advance Estimates of GDP at Factor Cost by Economic Activity

(At 1999-2000 prices) Rs. Crore

Advance Estimates of GDP at Factor Cost by Economic Activity

2004-05 2005-06 Percentage change over
Industry 2003-04 (Quick (Advance previous year 2004-05
Estimate) Estimate) 2005-06

1. Agriculture, forestry &

4,93,690 4,97,351 5,08,585 0.7 2.3
fishing

2. Mining & quarrying 49,714 52,594 53,128 5.8 1

3. Manufacturing 3,33,848 3,60,822 3,94,873 8.1 9.4

4. Electricity, gas & water

50,927 53,097 55,980 4.3 5.4
supply

5. Construction 1,38,548 1,55,920 1,74,738 12.5 12.1

6. Trade, hotels, transport

5,51,542 6,10,115 6,78,128 10.6 11.1
and Communication

7. Financing, insurance, real

2,93,545 3,20,554 3,50,858 9.2 9.5
estate & Business services

8. Community, social &

3,14,227 3,43,218 3,70,297 9.2 7.9
personal Services

GDP at factor cost 22,26,041 23,93,671 25,86,587 7.5 8.1

STATEMENT 3: Advance Estimates of National Income for the year 2005-06

(At current prices)
Advance Estimates of National Income for the year 2005-06
(At current prices)

2004-05(Quick 2005-06 (Advance

Item 2003-04
Estimate) Estimate)

ESTIMATES AT AGGREGATE
LEVEL

1. NATIONAL PRODUCT (Rs.

crore)

1.1 Gross national product

28,25,981 31,78,769
(GNP) at 25,25,146
(11.9) (12.5)
Factor cost

1.2 Net national product (NNP)

25,31,223 28,54,683
at 22,68,576
(11.6) (12.8)
Factor cost

2. DOMESTIC PRODUCT (Rs.

crore)

2.1 Gross domestic product

25,43,396 28,43,897 32,00,611
(GDP) at

Factor cost 27,60,224 (11.8) (12.5)

Gross domestic product (GDP)

31,21,414 35,29,240
at
(13.1) (13.1)
Market prices

2.3 Net domestic product

25,49,139 28,76,525
(NDP) at 22,86,826
(11.5) (12.8)
Factor cost

B. ESTIMATES AT PER CAPITA

LEVEL

1,090 1,107
Population (million) 1,073
(1.7) (1.7)

Per capita NNP at factor cost 23,222

21,142 25,788(11.0)
(Rs.) (9.8)

Note: The figures in parenthesis show the percentage change over previous year

STATEMENT 4: Advance Estimates of GDP at Factor Cost by Economic Activity

(At current prices) Rs. Crore

Advance Estimates of GDP at Factor Cost by Economic Activity

Percentage
2004-05 2005-06
change over
Industry 2003-04 (Quick (Advance
previous year
Estimate) Estimate)
2004-05 2005-06

1. Agriculture, forestry & fishing 5,34,689 5,56,146 5,95,389 4 7.1

2. Mining & quarrying 66,101 75,179 84,720 13.7 12.7

3. Manufacturing 3,90,470 4,53,666 5,14,002 16.2 13.3

4. Electricity, gas & water supply 56,365 60,719 66,682 7.7 9.8

5. Construction 1,59,415 1,86,392 2,18,447 16.9 17.2

Trade, hotels, transport and

6,08,330 6,99,762 7,99,647 15.0 14.3
Communication

7. Financing, insurance, real

3,69,456 4,05,801 4,64,167 9.8 14.4
estate & Business services

8. Community, social & personal

3,58,570 4,06,232 4,57,557 13.3 12.6
Services

GDP at factor cost 25,43,396 28,43,897 32,00,611 11.8 12.5

Source:- PIB Press Release.

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