Ministry of Statistics and Programme Implementation Introduces New GDP Series with Updated Base Year and Improved Methodology
India will release its first Gross Domestic Product (GDP) estimates based on a revised data series later today, marking a major update in how the country measures economic growth. The new series, introduced by the Ministry of Statistics and Programme Implementation (MoSPI), updates the base year to 2022–23 and incorporates several methodological improvements aimed at enhancing accuracy and reliability.
The revised GDP framework reflects structural changes in the economy and adopts new data sources and improved estimation techniques to provide a clearer picture of India’s economic performance.
Base Year Updated to Reflect Current Economic Structure
The base year for GDP calculation has been revised from 2011–12 to 2022–23, following international best practices of periodic updates. Officials said the change ensures economic data better reflects current production patterns, consumption trends, and sectoral contributions.
The ministry selected 2022–23 as the new base year because it represents a stable economic period, unlike previous years affected by the rollout of GST and disruptions caused by the COVID-19 pandemic.
New Data Sources and Surveys Improve Accuracy
The updated series incorporates several new and enhanced data sources, including Goods and Services Tax (GST) records, Public Finance Management System (PFMS) data, and vehicle registration data from the e-Vahan platform.
Regular surveys such as the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS) will now be used to measure the household sector more accurately, replacing earlier estimation methods based on proxy indicators.
Officials said these changes will improve coverage of informal sectors, gig economy workers, and small businesses, which play a significant role in India’s economy.
Methodological Improvements Enhance Reliability
The revised GDP series introduces several methodological upgrades, including the use of double deflation in sectors such as manufacturing and agriculture, allowing more precise measurement of real growth.
The Supply and Use Table (SUT) framework has also been integrated to reconcile differences between production and expenditure estimates, improving internal consistency and reducing statistical discrepancies.
In addition, estimates for multi-activity corporations will now be allocated across individual business segments rather than being attributed to a single primary activity, providing more accurate sector-wise data.
Quarterly Estimates and Back-Series Data to Follow
The government will release annual and quarterly GDP estimates under the new series for the period from 2022–23 to 2025–26. Back-series data extending to earlier years will be released later, with full historical revisions expected by December 2026.
Officials said the revised series aligns with global statistical standards, including the United Nations System of National Accounts, and will help policymakers, businesses, and investors make more informed decisions.
The new GDP framework is expected to offer a more comprehensive and accurate assessment of India’s economic growth, sectoral performance, and evolving economic structure.