Panel suggests replacing concept of GDP with ‘wealth’

“The Report shows that by ‘economic growth’ we should mean growth in wealth per capita,not growth in per capita GDP; and by ‘inclusive economic growth’ we should mean ‘inclusive growth in wealth’.”

Written by ENS Economic Bureau | New Delhi | Published: April 6, 2013 2:53 am

A high level committee on Friday suggested replacing the concept of gross domestic product for estimating an economy’s worth,with a comprehensive notion of ‘wealth’ that would consist of the social value of manufactured goods and infrastructure,human capital and natural capital.

The ‘Green National Accounts in India — A Framework,’ which was released by Prime Minister Manmohan Singh on Friday said,“The Report shows that by ‘economic growth’ we should mean growth in wealth per capita,not growth in per capita GDP; and by ‘inclusive economic growth’ we should mean ‘inclusive growth in wealth’.”

The report was prepared by an expert group set up by the ministry of statistics and programme implementation under Partha Dasgupta,professor at University of Cambridge and was chaired by MOSPI secretary TCA Anant.

‘Need environmentally sustainable policies’

Prime Minister Manmohan Singh on Friday said that policies should be designed keeping in mind their impact on the natural habitat. “Often,economic policies designed to promote growth have been implemented without considering their full environmental consequences,” he said while addressing the International Workshop for Green National Accounting for India.

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