The Ministry of Statistics and Programme Implementation (MoSPI) on Monday announced the government’s decision to update the base year for calculating India’s Gross Domestic Product (GDP) from 2011-12 to 2022-23.
The last revision to the base year was carried out in 2011-12, replacing the earlier reference year of 2004-05.
To facilitate this, an Advisory Committee on National Accounts Statistics (ACNAS) has been established.
The committee comprises experts from central and state governments, the Reserve Bank of India, academia, and research institutions. It will guide the identification of new data sources and recommend methodologies for compiling national accounts statistics under the revised series.
According to MoSPI, additional measures include standardizing data structures for harmonized reporting across the National Statistical System and utilizing administrative data to enhance the quality and reliability of statistical systems.
The announcement was made in the Rajya Sabha by Rao Inderjit Singh, the Minister of State (Independent Charge) for MoSPI, Planning, and Culture.
Updating the base year is essential to ensure GDP estimates reflect the most recent economic structure and activities.
A new base year incorporates changes in consumption patterns, production technologies, and economic policies, ensuring better alignment with ground realities. It also integrates more comprehensive and updated data sources, enhancing the accuracy of GDP calculations.
The base year serves as a reference period for calculating real GDP, which adjusts for inflation to provide a clearer picture of actual growth. By updating it to 2022-23, the government aims to reflect significant economic developments so far taken place in the economy.
Earlier in November, the Ministry of Statistics & Programme Implementation updated the time of the release of the GDP data, which aligns with the closing hours of major financial markets in India, ensuring that GDP data dissemination does not interfere with active trading.
