{"id":90186,"date":"2026-02-27T11:46:40","date_gmt":"2026-02-27T06:16:40","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=90186"},"modified":"2026-02-27T11:46:40","modified_gmt":"2026-02-27T06:16:40","slug":"indias-new-gdp-series-more-accurate-measure-of-economic-growth","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-new-gdp-series-more-accurate-measure-of-economic-growth\/","title":{"rendered":"India\u2019s New GDP Series &#8211; Towards a More Accurate Measure of Economic Growth"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>India\u2019s New GDP Series Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of Statistics and Programme Implementation (MoSPI) is releasing a new series of National Accounts Statistics (NAS) with <\/span><b>2022\u201323<\/b><span style=\"font-weight: 400;\"> as the base year, replacing the 2011\u201312 base year.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revised series aims to provide a more <\/span><b>accurate and granular<\/b><span style=\"font-weight: 400;\"> measurement of Gross Domestic Product (GDP) and Gross Value Added (GVA).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Why the New GDP Series Matters<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Updating the economic structure: <\/b><span style=\"font-weight: 400;\">Since the last revision in 2015, India\u2019s economy has undergone major transformations. <\/span><b>For example,<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Expansion of digital economy and e-commerce<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Increased formalisation due to GST<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Changes in consumption and employment patterns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Growth of financial and services sectors<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Updating the base year ensures<\/b><span style=\"font-weight: 400;\">: Better measurement of real economic growth, improved sectoral representation, and reliable policy formulation.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Key Structural Changes<\/b><\/h2>\n<ul>\n<li><b>Base year revision: <\/b><span style=\"font-weight: 400;\">The base year updated from 2011\u201312 to 2022\u201323, reflecting current economic structure, and improving comparability across time.<\/span><\/li>\n<li><b>Improved sector-wise measurement:<\/b>\n<ul>\n<li><b>Private corporate sector<\/b><span style=\"font-weight: 400;\">: <\/span><b>Old method: <\/b><span style=\"font-weight: 400;\">Entire company\u2019s GVA allocated to the dominant sector. <\/span><b>New method: <\/b><span style=\"font-weight: 400;\">Activity-wise revenue share approach. Captures sectoral contributions more accurately.<\/span><\/li>\n<li><b>General government sector: <\/b><span style=\"font-weight: 400;\">New inclusions are housing services provided to government employees. Better coverage of autonomous bodies, local governments. This improves measurement of government output.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Better Measurement of Household Sector<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The household sector, a major contributor to India\u2019s economy, will now be estimated more accurately.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improved data sources: <\/b><span style=\"font-weight: 400;\">Annual use of Annual Survey of Unincorporated Sector Enterprises (<\/span><b>ASUSE<\/b><span style=\"font-weight: 400;\">), and Periodic Labour Force Survey (<\/span><b>PLFS<\/b><span style=\"font-weight: 400;\">). Earlier, data was extrapolated, but direct annual estimation now.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Improved Consumption Estimates<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Private Final Consumption Expenditure (<\/span><b>PFCE<\/b><span style=\"font-weight: 400;\">) will be estimated using &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Household Consumer Expenditure Surveys<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Production data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Administrative datasets<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This improves measurement of domestic demand, and consumption-driven growth.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Integration of New Data Sources<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST data: <\/b><span style=\"font-weight: 400;\">Expanded use of Goods and Services Tax (GST) data, which will be applied for &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Regional output estimation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Corporate value addition measurement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Identification of active companies<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Impact<\/b><span style=\"font-weight: 400;\">: Better measurement of formal economy, and reduced estimation errors.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Financial Sector Improvements<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Banking sector: <\/b><span style=\"font-weight: 400;\">The new series will use the Statistical Table Related to Banks in India (STRBI) published by the Reserve Bank of India (RBI) to estimate the activity of both public sector banks as well as private sector banks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>NBFC sector:\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The earlier proxy-based approach to estimate the activity of private Non-Banking Financial Companies (NBFCs) is being replaced by the use of actual financial data of NBFCs from the Ministry of Corporate Affairs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Result will be improved financial sector GVA estimates.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Informal Sector and Agriculture<\/b><\/h2>\n<ul>\n<li><b>Better coverage of informal sector:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Enhanced use of ASUSE data captures insurance agents\u2019 activity, informal enterprises, and Gross Fixed Capital Formation (GFCF) in the unincorporated sector.<\/span><\/li>\n<li><b>Significance<\/b><span style=\"font-weight: 400;\">: Better representation of India\u2019s informal economy.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Agriculture sector improvements:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Updated methodologies and datasets based on studies by &#8211;\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Inland Grassland and Fodder Research Institute<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Central Marine Fisheries Research Institute<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Central Inland Fisheries Research Institute<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Agricultural Development and Rural Transformation Centre<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Impact<\/b><span style=\"font-weight: 400;\">: Improved estimation of livestock, fisheries, and fodder production.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Measure Methodological Upgrade &#8211; Double Deflation<\/b><\/h2>\n<ul>\n<li><b>Old system &#8211; Single deflator method:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Same inflation rate applied to inputs, and outputs, resulting in <\/span><b>overestimation <\/b><span style=\"font-weight: 400;\">when input prices fall slower than output prices, and underestimation when input prices rise faster.<\/span><\/li>\n<li><b>Example<\/b><span style=\"font-weight: 400;\">: Real GDP growth in 2025 possibly overstated due to this method.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>New system &#8211; Double deflator method:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Separate inflation adjustment for inputs, and outputs, resulting in more accurate real GVA and GDP, sector-specific deflators, and reduced growth distortions.<\/span><\/li>\n<li><b>Significance<\/b><span style=\"font-weight: 400;\">: Major statistical reform in GDP estimation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Integration with Supply and Use Tables (SUT):<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">SUT will be integrated into national accounts. They show production sources, imports, intermediate consumption, final consumption, and exports.<\/span><\/li>\n<li><b>Benefits<\/b><span style=\"font-weight: 400;\">: Reduced statistical discrepancy, and improved consistency between production approach, and expenditure approach.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Data improvements from States: <\/b><span style=\"font-weight: 400;\">Enhanced reporting by States includes local bodies, and autonomous institutions, resulting in increased direct estimation, and reduced imputation.<\/span><\/li>\n<li><b>Release timeline:\u00a0<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The new series of national accounts data to be released on February 27, 2026.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">However, it will take almost a year to get a \u2018back series\u2019 that shows GDP data for years before 2022-23 as per the new GDP series.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Possible Impact<\/b><\/h2>\n<ul>\n<li><b>On growth estimates:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">GDP revisions may raise growth estimates in some years, lower estimates in others.<\/span><\/li>\n<li><b>Previous revision (2015): <\/b><span style=\"font-weight: 400;\">2013\u201314 growth revised from 4.7% from ~6.4\u20136.9%<\/span><\/li>\n<li><b>New revision: <\/b><span style=\"font-weight: 400;\">May change recent growth estimates significantly.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>International statistical standards:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The 2008 System of National Accounts (SNA 2008) \u2013 the international statistical standard for national accounts data \u2013 is currently being used by India and other countries to compile GDP.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Last year, the United Nations Statistical Commission adopted an updated version of these norms, called SNA 2025.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India plans to shift to SNA 2025 in its next base year revision.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Challenges and Way Forward<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Statistical challenges: <\/b><span style=\"font-weight: 400;\">Complexity of double deflation, large data integration requirements, and back-series reconstruction difficulties.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Statistical reforms<\/b><span style=\"font-weight: 400;\">: Regular base-year revisions (every 5 years), faster release of back-series data, and improved administrative data integration.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Institutional challenges: <\/b><span style=\"font-weight: 400;\">State-level data quality variations, informal sector measurement gaps, and data lag from surveys.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Institutional measures<\/b><span style=\"font-weight: 400;\">: Strengthen State statistical systems, improve survey frequency, and enhance digital data collection.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Credibility issues: <\/b><span style=\"font-weight: 400;\">Past GDP revisions triggered debates, and there is the need for transparency in methodology.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Global alignment: <\/b><span style=\"font-weight: 400;\">Timely adoption of SNA 2025, and improved international comparability.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 2022\u201323 GDP base-year revision marks one of the most significant statistical upgrades in India\u2019s national accounts in over a decade.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If implemented transparently and updated regularly, the revised GDP framework will strengthen <\/span><b>evidence-based policymaking <\/b><span style=\"font-weight: 400;\">and international confidence in India\u2019s economic statistics.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/india-new-gdp-data-set-sources-process-upgrades-economy-accuracy\/article70678814.ece#:~:text=The%20new%20series%20of%20national%20accounts%20data%20to%20be%20released,the%20various%20changes%20being%20implemented\" target=\"_blank\" rel=\"nofollow noopener\"><b>TH<\/b><\/a>\u00a0<b>| <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/deflators-discrepancies-data-sources-11-years-india-gdp-updated-10554083\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The MoSPI is releasing India&#8217;s new GDP series of National Accounts Statistics (NAS) with 2022\u201323 as the base year, replacing the 2011\u201312 base year.<\/p>\n","protected":false},"author":19,"featured_media":90203,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[5760],"class_list":{"0":"post-90186","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-indias-new-gdp-series","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/90186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=90186"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/90186\/revisions"}],"predecessor-version":[{"id":90209,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/90186\/revisions\/90209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/90203"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=90186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=90186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=90186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}