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      Question

      According to reforms introduced in the new constant

      price estimation methodology for India’s national accounts, which technique is being adopted to improve the accuracy of Gross Value Added (GVA) calculations in manufacturing?
      A Triple Index Method Correct Answer Incorrect Answer
      B Double Deflation Method Correct Answer Incorrect Answer
      C Chain Linking Method Correct Answer Incorrect Answer
      D Price Averaging Method Correct Answer Incorrect Answer
      E Input Ratio Method Correct Answer Incorrect Answer

      Solution

      A key reform introduced in the revision of India’s national accounts base year to FY 2022–23 is the adoption of the Double Deflation Method for several manufacturing industries. Under this method, both output and intermediate consumption are deflated separately using appropriate price indices. This approach allows statisticians to obtain a more accurate estimate of Gross Value Added (GVA) at constant prices, which represents real economic growth after adjusting for inflation. The method replaces the earlier single deflator approach, improving the reliability and precision of real GDP calculations.

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