New GDP Series: Stronger Agriculture and Informal Manufacturing Revealed

New GDP Series

New GDP Series Latest News

  • India’s new GDP series, with 2022–23 as the base year, has introduced notable changes in the assessment of economic performance. 
  • The revised data shows more stable real GDP growth rates for the years beginning 2023–24, ranging between 7.1% and 7.6%, compared to the earlier wider range of 6.5% to 9.2%.
  • The updated series also indicates a 3–4% reduction in the overall size of the economy in nominal terms (Nominal GDP → Uses current market prices). 
  • However, the revision is considered reasonable and reflects a more accurate measurement of economic activity.
  • Importantly, the new GDP series offers a clearer picture of how different sectors of the economy are performing.

Agriculture Sector Larger in the New GDP Series

  • The new GDP series released by the Ministry of Statistics and Programme Implementation (MoSPI) shows that the agriculture, livestock, forestry and fishing sector is about 5% larger than previously estimated for the years starting 2022–23 in nominal terms.
  • Since the overall size of the economy has been revised downward by 3–4%, agriculture’s share in GDP has increased. 
  • The sector’s share rose to 18.2% in 2022–23, compared with 16.5% in the earlier GDP series.
  • Despite the revision, agriculture’s share in the economy continues to decline over time. In 2025–26, agriculture accounts for 16.2% of GDP in the new series, compared with 15.2% in the old series.

Reasons for the Higher Estimate

  • Inclusion of More Cash Crops - The new GDP series better captures the shift toward cash crops such as fruits and vegetables. These crops generate higher profits for farmers, increasing the value added in agriculture and raising the sector’s estimated size.
  • Reduced Input Costs for Farmers - The new estimates also reflect a decline in fuel costs in agriculture. Diesel use has reduced and is increasingly being replaced by electricity and solar power for irrigation. Lower input costs increase the value added generated by farmers.

Role of the PM-KUSUM Scheme

  • A major factor behind this shift is the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme launched in 2019.
  • The scheme provides subsidies for installing solar irrigation pumps, helping farmers reduce dependence on diesel and lower energy costs. 
  • This transition contributes to higher value added in the agricultural sector.

Stronger Manufacturing Growth in the New GDP Series

  • The new GDP series shows that the manufacturing sector has become a stronger driver of economic growth. 
  • Under the old GDP series, manufacturing grew at an average rate of about 8% between 2023–24 and 2025–26, with a sharp 12.3% growth in 2023–24 largely due to a favourable base effect.
  • In contrast, the new GDP series estimates manufacturing growth at an average of 11.2% annually during the same period, indicating a stronger and more consistent expansion of the sector.

Methodological Improvements in Estimation

  • One important reason for the higher growth estimate is the abandonment of the single-deflator method, which was widely criticised for inaccurately converting nominal Gross Value Added (GVA) into real terms. 
    • The single-deflator method is an economic technique used to calculate real Value Added (or GDP) by deflating nominal value added directly with a single price index, typically the output price index (e.g., WPI or CPI). 
    • It assumes input and output prices move similarly, often leading to overestimation when they diverge.
  • The revised methodology provides a more accurate estimate of manufacturing output.

Better Data on the Informal Sector

  • Improved data sources have also contributed to the revised estimates. 
  • Surveys such as the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS) now capture more information about the informal manufacturing sector.
  • This improved data coverage has helped economists estimate stronger and more consistent manufacturing growth in the new GDP series.

Informal Economy in the New GDP Series

  • One major criticism of India’s earlier GDP estimates was the inaccurate measurement of the informal sector. 
  • The new GDP series attempts to correct this by using data from the Periodic Labour Force Survey (PLFS) and the Annual Survey of Unincorporated Sector Enterprises (ASUSE).
  • These surveys reduce the earlier dependence on formal-sector proxies and provide a more realistic picture of informal economic activity.

Impact on Different Sectors

  • The improved measurement of the informal economy has contributed to stronger estimates of manufacturing growth, as informal manufacturing activities are now better captured in the data.

Decline in Estimated Size of Some Service Activities

  • However, data for some service-sector activities suggest that the size of the unorganised sector may have been overestimated earlier.
  • For example, the sector comprising trade, repair, hotels and restaurants, transport, storage, communication, and broadcasting-related services has seen its Gross Value Added (GVA) fall by nearly 25% annually between 2022–23 and 2025–26 in the revised estimates.
  • According to officials, this sector has a large informal component, and better data has led to more accurate and possibly lower estimates of its size.

Source: IE

New GDP Series FAQs

Q1: What is the New GDP Series introduced by India?

Ans: The New GDP Series uses 2022–23 as the base year and incorporates improved data sources to provide a more accurate measurement of sectoral performance and overall economic growth.

Q2: Why does the New GDP Series show agriculture as larger?

Ans: The New GDP Series includes better data on cash crops like fruits and vegetables and lower fuel costs due to solar irrigation, increasing the value added in the agricultural sector.

Q3: How has manufacturing growth changed in the New GDP Series?

Ans: Manufacturing growth is estimated at about 11.2% annually between 2023–24 and 2025–26 in the New GDP Series due to improved methods and better data on informal sector production.

Q4: How does the New GDP Series measure the informal economy better?

Ans: The New GDP Series uses surveys such as the Periodic Labour Force Survey (PLFS) and the Annual Survey of Unincorporated Sector Enterprises (ASUSE) to capture informal sector activity more accurately.

Q5: What major methodological change was made in the New GDP Series?

Ans: The New GDP Series abandons the criticised single-deflator method for calculating real GVA, improving accuracy in measuring manufacturing output and overall economic performance.

Canada Uranium Deal: Fueling India’s Nuclear Power Expansion

Canada Uranium Deal

Canada Uranium Deal Latest News

  • India and Canada have signed an agreement for the long-term supply of uranium to fuel India’s nuclear reactors. Under the deal, Canadian company Cameco will supply about 22 million pounds (around 10,000 tonnes) of uranium to India between 2027 and 2035. The contract is valued at about 2.6 billion Canadian dollars.
  • This is India’s second major uranium supply agreement within a month. Earlier, India finalised a similar deal with Kazakhstan’s state-owned company Kazatomprom, though details of that contract have not been disclosed.
  • These agreements are significant for India’s plans to greatly expand nuclear power generation and increase nuclear energy capacity more than tenfold by 2047.

India’s Dependence on Imported Uranium

  • Although India has uranium deposits, the quality of its ore is relatively low. The uranium concentration in Indian mines ranges between 0.02 and 0.45 per cent
    • This is far lower than the global average of 1–2 per cent.
  • In comparison, some mines in Canada contain uranium concentrations as high as 15 per cent. 
  • Because of the lower ore quality, extracting uranium in India is more expensive than importing it.

Growing Reliance on Imports

  • Due to these limitations, more than 70 per cent of India’s uranium needs are currently met through imports. 
  • However, domestic production still plays an important role. 
  • It supports India’s nuclear weapons programme and provides a buffer in case global supply chains are disrupted.

Expansion of Domestic Production

  • India is increasing domestic uranium production to support the planned expansion of nuclear energy. 
  • The government aims to raise nuclear power capacity from about 9 GW today to 100 GW by 2047.
  • Despite this expansion, domestic production is expected to meet only around 30 per cent of the fuel requirements of nuclear power plants in the future.

Rising Uranium Demand

  • India currently consumes about 1,500–2,000 tonnes of uranium each year. In 2025, the country’s requirement was about 1,884 tonnes.
  • With the expansion of nuclear power, annual uranium demand could rise to about 5,400 tonnes
  • Even then, only around 30 per cent of this demand is likely to be met through domestic production.

Domestic Uranium Resources and Production

  • India’s uranium production is mainly concentrated in Jharkhand and Andhra Pradesh, where seven mines are currently operational. 
  • Uranium deposits are also found in states such as Meghalaya, Rajasthan, and Telangana.
  • India’s total uranium resources are estimated at about 4.3 lakh tonnes of uranium ore. 
  • More than 80,000 tonnes are located in mines allocated to the Uranium Corporation of India Limited (UCIL), and about 40 per cent of these reserves have already been extracted. 
  • Explorations are ongoing in nearly 15 states to identify new deposits.

Expanding and Diversifying India’s Uranium Supply

  • New uranium supply agreements, including the recent deal with the Canadian company Cameco, aim to diversify India’s import sources and meet rising nuclear fuel demand.
  • The agreement with Canada also reflects improving bilateral relations after a period of diplomatic tensions.

Longstanding Nuclear Cooperation with Canada

  • India and Canada have had nuclear cooperation since the 1950s. One early example was the CIRUS reactor, a joint India–Canada project. 
  • Canada also helped establish reactors at the Rajasthan Atomic Power Project in the 1960s.
  • Cameco has previously supplied uranium to India, including during 2020–21.

Multiple Global Supply Sources

  • With the new agreement, India now imports uranium from several countries, including Uzbekistan, Kazakhstan, Canada, and Russia
  • Russia has also committed to long-term fuel supply for reactors at Kudankulam in Tamil Nadu.
  • India may further expand supply partnerships with countries such as Australia and the United States. 
  • Indian companies are also exploring opportunities to mine uranium in other countries to strengthen long-term energy security.

India’s Three-Stage Nuclear Programme

  • India aims to develop a three-stage nuclear power programme that will ultimately rely on thorium rather than uranium. 
  • The country possesses large thorium reserves, which makes this approach attractive for long-term energy security and independence.
  • However, achieving this goal requires specialised nuclear reactors based on technologies that are proven but not yet widely used.
  • First Stage: Uranium-Based Reactors - The nuclear reactors currently operating in India represent the first stage of the programme. These reactors primarily use uranium as fuel and produce plutonium as a by-product for the next stage.
  • Second Stage: Fast-Breeder Reactors - The second stage involves fast-breeder reactors that use plutonium produced in the first stage. India has taken a major step toward this stage with a prototype fast-breeder reactor at Kalpakkam, which is nearing operational status.
  • Third Stage: Thorium-Fuelled Reactors - The final stage aims to deploy reactors that use thorium as the main fuel. This stage is still some distance away and will require advanced technological development.

Slow Progress Despite Early Vision

  • India conceived the three-stage nuclear programme in the 1950s and remains the only country pursuing this model. 
  • However, progress has been slow, and full realisation of the programme is still a long-term objective.

Source: IE | FP

Canada Uranium Deal FAQs

Q1: What is the Canada Uranium Deal?

Ans: The Canada Uranium Deal is an agreement under which the Canadian company Cameco will supply about 22 million pounds of uranium to India between 2027 and 2035 to fuel its nuclear reactors

Q2: Why is the Canada Uranium Deal important for India?

Ans: The Canada Uranium Deal ensures long-term fuel availability for India’s nuclear reactors, helping the country expand nuclear power capacity from around 9 GW today to about 100 GW by 2047.

Q3: Why does India import uranium despite having domestic deposits?

Ans: India imports uranium because its domestic uranium ore has low concentration levels (0.02–0.45%), making extraction expensive compared with higher-grade uranium deposits available in countries like Canada.

Q4: Which countries currently supply uranium to India?

Ans: India currently imports uranium from several countries including Canada, Kazakhstan, Uzbekistan, and Russia, with additional potential supply partnerships expected with Australia and the United States.

Q5: How does uranium supply support India’s three-stage nuclear programme?

Ans: Uranium fuels the first stage of India’s three-stage nuclear programme, producing plutonium that will later power fast-breeder reactors and eventually enable thorium-based nuclear energy generation.

Childhood Obesity in India – Global Ranking and Health Risks

Childhood Obesity

Childhood Obesity Latest News

  • India has ranked second globally in the number of children living with overweight and obesity, according to the World Obesity Atlas 2026

Global Trends in Childhood Obesity

  • Childhood obesity has emerged as a major global public health challenge over the past two decades. 
  • According to the World Obesity Atlas 2026, more than one in five children aged 5-19 worldwide are overweight or obese, representing about 20.7% of children globally, compared to 14.6% in 2010. 
  • The report indicates that over 200 million school-age children living with overweight or obesity are concentrated in just ten countries. 
  • China, India, and the United States account for a large proportion of this burden. 
  • Globally, the number of children affected by overweight and obesity is projected to continue rising. 
  • The World Obesity Federation estimates that around 507 million children worldwide could be overweight or obese by 2040, highlighting the urgent need for preventive health policies. 
  • These trends demonstrate that childhood obesity is no longer limited to high-income countries; it is rapidly increasing in developing and middle-income nations as well.

India’s Ranking and Current Situation

  • India now ranks second globally after China in the number of children living with overweight and obesity. 
  • According to the World Obesity Atlas 2026:
    • Around 41 million children in India have high Body Mass Index (BMI).
    • Approximately 14 million children are living with obesity. 
  • Data from 2025 shows that:
    • Nearly 14.9 million children aged 5-9 years were overweight or obese.
    • More than 26 million adolescents aged 10-19 years were overweight or obese. 
  • These figures place India ahead of the United States in terms of the number of children affected by obesity. However, experts note that India’s large population size contributes significantly to this ranking.
  • Within the WHO South-East Asia Region, India has the highest number of children and adolescents affected by overweight and obesity.

Future Projections for India

  • The World Obesity Atlas provides projections for the period 2025-2040, indicating a worrying rise in childhood obesity in India.
  • Key projections include:
    • Around 20 million children in India are expected to be living with obesity by 2040.
    • Nearly 56 million children are projected to be overweight or obese by the same period. 
  • In addition, the report predicts that many children may develop health complications associated with high BMI. For instance:
    • Cases of BMI-related hypertension may rise from 2.99 million to 4.21 million.
    • Hyperglycaemia may increase from 1.39 million to 1.91 million.
    • High triglycerides, a risk factor for cardiovascular disease, may increase from 4.39 million to 6.07 million. 
  • These projections indicate that childhood obesity could significantly increase the burden of non-communicable diseases (NCDs) in India.

Health Implications of Childhood Obesity

  • Childhood obesity exposes young individuals to several health risks typically associated with adulthood. These include Hypertension, Cardiovascular diseases, Type 2 diabetes and Metabolic disorders
  • The report estimates that over 57 million children may show early signs of cardiovascular disease by 2040, while more than 43 million may show symptoms of hypertension. 
  • Additionally, childhood obesity increases the likelihood of obesity persisting into adulthood, leading to long-term health and economic consequences.
  • Thus, tackling obesity early in life is crucial for preventing future health crises.

Key Factors Contributing to Childhood Obesity

  • Several lifestyle and environmental factors are contributing to rising obesity levels among children in India.
  • The report highlights the following risk factors:
    • Low physical activity: About 74% of adolescents aged 11-17 fail to meet recommended physical activity levels. 
    • Poor dietary patterns: Children increasingly consume processed foods and sugary beverages, contributing to higher calorie intake.
    • Limited school nutrition coverage: Only 35.5% of school-age children receive school meals, indicating gaps in nutrition programmes. 
    • Early-life nutrition challenges: Around 32.6% of infants experience sub-optimal breastfeeding, which may increase the risk of obesity later in life. 
    • Maternal health risks: About 13.4% of women aged 15-49 have high BMI, while 4.2% live with Type 2 diabetes, which may influence childhood obesity risk. 
  • These factors highlight that childhood obesity is influenced by a combination of lifestyle, nutrition, and social determinants.

Policy Measures and Prevention Strategies

  • The World Obesity Federation has emphasised the need for coordinated policy responses to address childhood obesity.
  • Recommended measures include:
    • Healthier school food environments
    • Restrictions on marketing unhealthy foods to children
    • Taxes on sugar-sweetened beverages
    • Promotion of physical activity among children
    • Protection and promotion of breastfeeding
    • Integration of obesity prevention into primary healthcare systems 
  • Experts also emphasise early screening and intervention to identify at-risk children and provide appropriate healthcare support.
  • Implementing these measures can help slow the rise of childhood obesity and improve long-term health outcomes.

Source : TH | IE

Childhood Obesity FAQs

Q1: Which report highlighted India’s childhood obesity ranking?

Ans: The World Obesity Atlas 2026 reported that India ranks second globally in childhood obesity.

Q2: How many children in India are overweight or obese?

Ans: Around 41 million children in India have high BMI, including about 14 million living with obesity.

Q3: Which country ranks first in childhood obesity numbers?

Ans: China ranks first globally in the number of children with high BMI.

Q4: What major health risks are associated with childhood obesity?

Ans: Hypertension, cardiovascular disease, diabetes, and metabolic disorders are major risks.

Q5: What policy measures can reduce childhood obesity?

Ans: Measures include promoting healthy diets, increasing physical activity, regulating food marketing, and taxing sugary beverages.

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