India to Update GDP Base Year to 2022-23 for More Accurate Economic Assessment
The government is considering changing the base year for calculating India’s Gross Domestic Product (GDP) to 2022-23, from the current base year of 2011-12, to better reflect the current state of the economy. According to sources, this would be the first update in over a decade, with the last change occurring in 2011-12. The revised estimates using the new base year are expected to be released in February 2026.
The Ministry of Statistics and Programme Implementation (MoSPI) is expected to propose 2022-23 as the new base year to the Advisory Committee on National Accounts Statistics (ACNAS), which consists of 26 members led by Biswanath Goldar. The committee is expected to complete this process by early 2026.
Sources have mentioned that certain outdated items such as lanterns and VCRs will be removed from the calculations, while newer products like smartwatches, smartphones, and processed foods will be included. Additionally, GST data will likely be incorporated as a new source for calculating GDP, alongside updated rates and ratios, which will improve the overall accuracy of the estimates.
To strengthen the statistical system and improve data quality, the government is conducting a pilot survey to explore the feasibility of using GST-based data for an annual survey of service sector enterprises. Several other surveys are also planned for the 2024-25 and 2025-26 periods, including a domestic tourism expenditure survey, a national household travel survey, a full health survey, and education-related indicators. By 2026-27, surveys on the living conditions of tribal communities, debt and investment in India, and an assessment of agricultural conditions will be conducted.
Union Minister Rao Inderjit Singh recently urged stakeholders to work together to improve the quality, relevance, and timeliness of data collection for better governance.
Inputs from Bloomberg
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