Analysis should take into account changes in district-level GDP growth

A 10% hike in new firm creation increases district-level GDP growth by 1.8%

The Survey highlighted that any analysis of new GDP methodology should also take into account changes in the district-level economic growth. It said the granular evidence shows that a 10 per cent hike in new firm creation increases district-level GDP growth by 1.8 per cent.

As the pace of new firm creation in the formal sector accelerated significantly more after 2014, the resultant impact on district- and country-level growth must be accounted for in any analysis.  Quoting a study, it said India’s improvement in indicators such as access to nutrition and electricity might explain the higher growth rate in Indian GDP