India is set to update the base year for calculating its Gross Domestic Product (GDP) from 2011-12 to 2022-23

In a significant move to enhance the accuracy of economic assessments, the Government of India has announced plans to update the base year for calculating Gross Domestic Product (GDP) from 2011-12 to 2022-23. This revision, the first in over a decade, aims to better reflect the current economic landscape and structural changes.

Key Developments

Formation of Advisory Committee: A 26-member Advisory Committee on National Accounts Statistics (ACNAS), chaired by Biswanath Goldar, has been established. The committee comprises representatives from the Reserve Bank of India (RBI), central and state governments, academia, and researchers. Its primary task is to identify new data sources and refine the methodology for compiling National Accounts Statistics under the revised series.

Implementation Timeline: The revised GDP series, based on the 2022-23 base year, is expected to be implemented by early 2026. This timeline allows for comprehensive data collection and analysis to ensure the accuracy of the new series.

Rationale for Revision: Regular updates to the GDP base year are essential to accurately reflect structural changes in the economy, such as shifts in consumption patterns, sectoral contributions, and the inclusion of emerging sectors. Aligning with the economic realities of 2022-23 will provide a more precise framework for policymaking and analysis.

Additional Initiatives: In conjunction with the base year revision, the Ministry of Statistics and Programme Implementation (MoSPI) plans to introduce monthly estimates of the Periodic Labour Force Survey (PLFS) starting January 2025. This initiative aims to enhance data-driven decision-making and improve the quality of labor market statistics.

Summary of the news