New GDP data series from today: What are the top changes in the methodology? FAQs answered

The Gross Domestic Product oregon GDP information for the 3rd 4th of the existent fiscal twelvemonth 2025-26 is acceptable to beryllium released aboriginal successful the time today. This volition beryllium the archetypal GDP information based connected the caller bid that the Ministry of Statistics and Programme Implementation has adopted.

India is the world's fastest increasing large economy, connected its mode to go the 3rd largest system successful nominal GDP presumption successful the coming years. The caller bid of information not lone revises the basal twelvemonth for calculation purposes to 2022-23, it besides incorporates respective captious changes with an purpose to springiness a much close measurement of the size of the Indian system and its existent and nominal GDP growth. What changes successful the caller GDP information series? Below is simply a database of FAQs shares by the Ministry of Statistics and Programme Implementation:

New GDP Series: Frequently Asked Questions Answered

1. What is Gross Domestic Product? Gross Domestic Product, which is commonly known arsenic GDP, is the worth of last goods and services produced successful the home system successful an accounting period. In bid to measure the alteration successful system from 1 play to different successful a meaningful manner, it is important to guarantee that aforesaid measurement methods and information sources person been utilized for some the periods.2. What is simply a basal twelvemonth with notation to National Accounts? What is rebasing exercise? What is the value of this rebasing workout carried retired by MoSPI?The basal twelvemonth successful National Accounts Statistics is the notation twelvemonth whose prices are utilized to cipher existent growth.

Rebasing refers to a process of updating base-period benchmarks with caller updated statistic to get astatine a caller economical operation that volition service arsenic the ground for estimating gross home merchandise and its components, user terms scale and scale of concern production, moving forward. Methodology and information sources utilized successful compilation of GDP and different macro-economic indicators for a peculiar bid are finalized astatine the clip of basal twelvemonth revision and proceed for each consequent years till the basal twelvemonth is revised again.The basal twelvemonth is updated from clip to clip to bespeak the changes that person happened successful the system implicit the years. This helps marque economical information much accurate. It besides allows the usage of caller information sources and amended methods for calculating estimates. 3. What is the frequence of basal twelvemonth revisions undertaken by MoSPI? Under mean conditions, it has been MoSPI’s endeavor to revise the basal twelvemonth periodically successful 5 years, arsenic per planetary recommendation. 4. Why is the GDP basal twelvemonth being revised to FY 2022-23?The basal twelvemonth of the nationalist accounts is being revised from 2011-12 to 2022-23. MoSPI's endeavour has been to revise the basal twelvemonth each 5 years. However, twelvemonth betwixt FY 2017-18 to FY 2021-22 were not suitable arsenic basal year: ● FY 2017-18:There was large alteration introduced namely, GST. This required clip for consolidation. ● FY 2019-20 and FY 2020-21 were impacted by the COVID-19 pandemic. ● FY 2021-22 witnessed crisp GDP maturation mostly owed to the basal effect of post-COVID recovery, making it unsuitable. After elaborate discussions, the Advisory Committee connected National Accounts Statistics recommended 2022-23 arsenic the caller basal year. The Committee includes members from assorted Central Ministries and Departments, State Governments, Academia and Research Institutions. The Committee recovered FY 2022-23 to beryllium a mean economical year, and important survey information needed for estimating nationalist income was besides disposable for this year.

5. In the caller GDP series, for however galore years volition the back-series information beryllium provided for? By erstwhile tin we expect it? On 27 February, 2026, some the yearly and quarterly estimates for the twelvemonth 2022-23 to 2025-26 volition beryllium released. Back bid information is expected to beryllium released by December 2026. As per the practice, successful India, back-series estimates are recalculated utilizing revised methodology of the caller GDP bid up to the erstwhile basal year.

After that, the information is linked astatine a disaggregated level and extended backmost to 1950-51. However, the last method for preparing the back-series volition beryllium decided successful consultation with the Advisory Committee acceptable up to usher MoSPI.

6. How comparable volition the revised GDP bid beryllium with planetary statistical standards specified arsenic the UN System of National Accounts? India prepares its GDP estimates according to the 2008 System of National of Accounts (SNA 2008), which is simply a globally accepted standard. The United Nations Statistical Division (UNSD) is present moving from SNA 2008 to SNA 2025.

Countries are expected to follow a caller modular during 2029-30. India plans to displacement to SNA 2025 successful its adjacent basal twelvemonth revision. Besides, India is besides a subscriber of IMF’s Special Data Dissemination Standard (SDDS), which indicates that the state meets each the tests of bully statistical citizenship.

The revised bid is successful sync with the planetary statistical standards.7. Is MoSPI readying to merchandise a elaborate papers connected methodology and information sources utilized successful the caller series? Yes. Methodology and information sources utilized successful compilation of estimates volition beryllium presented comprehensively successful MoSPI's work 'Sources and Methods'.

The work is scheduled to beryllium released successful the adjacent fewer months.8. What caller information are being incorporated successful the caller GDP series?Several caller and improved information sources are being utilized successful the caller GDP bid to marque the estimates much close and reliable.Measurement of the Household Sector:Earlier, the household assemblage was estimated utilizing maturation rates betwixt surveys oregon proxy indicators. In the caller series, existent level estimates are being prepared utilizing regular yearly surveys specified arsenic Annual Survey of Unincorporated Sector Enterprise (ASUSE) and Periodic Labour Force Survey (PLFS).

These surveys volition measurement the dynamism successful the household assemblage much accurately and regularly.

GST information volition besides beryllium utilized to cross-check the estimates obtained from different information sources.

9. What are the large methodological changes successful the caller GDP series? The large methodological improvements include:

10. From wherever details of improvements listed supra tin beryllium accessed? Advisory Committee connected National Accounts Statistics (ACNAS) was constituted successful 2024 to suggest MoSPI, among different things, connected issues specified arsenic methodological improvements, incorporation of caller information sources etc.

Five sub-committees were constituted nether ACNAS to simultaneously deliberate connected circumstantial subjects. 56 experts who were members of these committees deliberated successful 40 meetings during the past 2 years connected these issues.

The details of above-mentioned improvements are disposable successful the reports of 3 sub-committees dealing with all-India estimates, which are disposable connected the website of the Ministry. Report of the Sub-committee connected Regional Accounts and Sub-committee connected SNA Update volition beryllium released later. 11. What measures person been taken successful the caller bid to seizure India’s household assemblage much comprehensively?In the aged series, the household assemblage was estimated for the basal twelvemonth utilizing the Survey connected Unincorporated Sector Enterprises and the Employment Survey. For aboriginal years, estimates were made by extrapolating the basal twelvemonth utilizing maturation betwixt surveys oregon proxy indicators.In the caller series, however, existent level estimates of the household assemblage are being prepared each twelvemonth utilizing regular surveys specified arsenic Annual Survey of Unincorporated Sector Enterprise (ASUSE) and Periodic Labour Force Survey (PLFS).

This attack allows the household assemblage to beryllium measured much accurately and dynamically, eliminating the request for extrapolation from the basal year. 12. Is the publication of the hired home workers (like cooks, drivers, persons cleaning households, etc.) by the households included successful the estimation of GDP? Yes, specified activities are termed arsenic the “activities of households arsenic employers of home personnel” and their publication is included successful the estimation of the GDP.

The estimation is based connected the fig of specified workers and their wages arsenic disposable from the yearly PLFS data. 13. How volition the revised basal twelvemonth amended measurement of newer sectors similar integer services, level economy, gig workers etc.? All economical activities, including integer services and intermediary platforms etc. were already covered done MCA-21 information for the firm sector.In the 2022-23 series, with availability of 2 yearly surveys namely, ASUSE and PLFS, the publication of GDP of these sectors successful the household assemblage (like unincorporated tiny businesses, self-employed people, informal economical work, etc.)

is being much accurately captured annually done these survey-based estimates. ASUSE has dedicated economical enactment codes to seizure gig workers, specified arsenic drivers operating nether aggregators (like Ola, Uber, etc.

) and transportation work activities (like Zomato, Swiggy, etc.). All economical activities is being captured much comprehensively successful the caller series.14. Does the caller bid comprehensively resoluteness the persistent concerns regarding the accuracy of the GDP deflator?Yes. An advisory Committee was acceptable up to usher the basal revision of GDP.

A sub-committee specifically examined issues related to deflators. As per the proposal of the Committee, successful the caller series, azygous deflation has been wholly eliminated. In fact, treble deflation is being applied successful sectors similar manufacturing and agriculture. In different sectors, azygous extrapolation is being used. Deflators are being applied astatine a much detailed, granular level.

These changes are expected to amended the accuracy and reliability of GDP deflators successful the caller series.15. Is MoSPI inactive utilizing the WPI with 2011-12 basal twelvemonth successful calculating GDP estimates successful the caller series? Will the ministry usage the PPI prepared by DPIIT successful the caller GDP series?The basal twelvemonth revision of WPI is inactive successful progress. Until the updated WPI becomes available, the existing WPI volition proceed to beryllium utilized arsenic a deflator. However, it is important to enactment that the method of usage of WPI has undergone alteration successful caller bid compared to the aged series.

In the caller series, WPI is utilized astatine granular level. Separate item-level WPI for output and intermediate depletion are utilized successful Manufacturing sector.

Adoption of treble deflation successful manufacturing assemblage volition alteration improved measurement of its GVA estimates compared to aged bid wherever aforesaid WPI was utilized for some output and input items. Using WPI astatine the point level besides avoids distortions caused by changes successful weights erstwhile aggregating crossed items and sub-categories. Additionally, the Ministry plans to incorporated the PPI successful the adjacent aboriginal erstwhile it is officially released by the DPIIT.16. What is Supply and Use Table Framework?The proviso and usage tables picture however products (goods and services) are brought into an system (either arsenic a effect of home accumulation oregon imports from different countries), and however those aforesaid products are utilized (as intermediate depletion oregon arsenic last depletion by households, nonprofit institutions serving households (NPISHs), wide authorities oregon arsenic gross superior enactment oregon arsenic exports).

The proviso and usage tables supply a almighty model to equilibrium and integrate each the components of the production, income and expenditure approaches to measuring GDP.

17. What is Supply and Use Table Framework?The proviso and usage tables picture however products (goods and services) are brought into an system (either arsenic a effect of home accumulation oregon imports from different countries), and however those aforesaid products are utilized (as intermediate depletion oregon arsenic last depletion by households, nonprofit institutions serving households (NPISHs), wide authorities oregon arsenic gross superior enactment oregon arsenic exports).

The proviso and usage tables supply a almighty model to equilibrium and integrate each the components of the production, income and expenditure approaches to measuring GDP.

18. Why does this discrepancy originate successful data? Discrepancies hap due to the fact that of differences successful information sum crossed sources, clip lags successful erstwhile accusation becomes available, usage of proxy information for beforehand estimates, and antithetic estimation methods. 19. What are the SNA recommendations to grip this discrepancy?As per the System of National Accounts 2008 (SNA 2008) and continued successful System of National Accounts 2025 (SNA 2025), the pursuing recommendations are made for handling statistical discrepancy successful GDP estimates: i) The statistical discrepancy whitethorn beryllium explicitly shown and published alongside authoritative GDP estimates. This enhances transparency enabling users to intelligibly recognize the statistical quality alternatively of adjusting the estimates to unit equality. ii) Another attack is to reconcile the Production/Income and Production broadside estimates by borrowing spot from Supply and Use Table (SUT) framework. 20. How volition the discrepancy beryllium adjusted successful the caller GDP series?In the caller GDP series, the Supply and Use Tables (SUT) model is being utilized to reconcile differences betwixt accumulation and expenditure estimates. The SUT model applies the product-balancing principle, providing a robust mode to align divergent information and guarantee consistency crossed each sectors.

By integrating SUT model into GDP compilation, discrepancies successful the Final Estimates is being resolved, resulting successful internally accordant GDP estimates.

21. Are organization assemblage omniscient estimates compiled and what are the information sources utilized successful compilation of organization assemblage omniscient estimates?Following SNA 2008, the system has been divided successful the pursuing organization sectors: i. Non-Financial Private Corporations Sector: by utilizing the information connected their yearly nett & nonaccomplishment relationship and equilibrium expanse etc. from Ministry of Corporate Affairs (MCA) ii. Financial Corporations Sector: by utilizing the information of the fiscal companies, regulators (SEBI, RBI, IRDAI etc.)

on the nett & nonaccomplishment relationship and equilibrium expanse etc. iii. General Government Sector: by utilizing the fund documents of Central and State Governments and PFMS information connected the expenditure. iv. Household Sector: for agriculture, utilizing the information connected accumulation of crops from the Ministry of Agriculture & Farmers payment and the terms information of the crops from the State/UT Governments, the carnal husbandry and fisheries related information from the respective Ministries, for operation assemblage utilizing the information connected antithetic commodities utilized successful the manufacture from antithetic sources and for the remaining sectors by utilizing the yearly surveys conducted by NSO, MoSPI, namely, ASUSE and PLFS.

v. Non-Profit Institutions Serving Household (NPISH) Sector: Presently, successful India, the estimates for NPISH are included successful the Household Sector utilizing the survey data. Estimates for each manufacture are prepared by organization sector. For the Household Sector, industries specified arsenic Agriculture, Construction, and Ownership of Dwellings usage a antithetic methodology than different industries. Detailed explanations of these methods are disposable successful the applicable treatment papers and sub-committee reports. 22. What are the large information sources to compile the estimates of General Government Sector? How the estimates of General Government assemblage are compiled?The main information sources for the General Government assemblage include: Central and authorities governments fund documents (e.g., receipt budget, elaborate demands for grants of each Ministries/Departments), yearly accounts of section bodies and autonomous institutions. As authorities provides services connected non-market basis, output of this assemblage is valued by the sum of the costs incurred successful their production, namely, arsenic the sum of Compensation of Employees (CE), Intermediate Consumption (IC) and Consumption of Fixed Capital (CFC). The basal identities successful this lawsuit are:

23. What large changes person been incorporated successful the estimation of General Government Sector successful the caller series? Some of the large improvements incorporated successful estimation of General Government successful the caller bid are arsenic follows:

24. What methodological improvements person been introduced successful quarterly GDP estimation nether the caller basal twelvemonth 2022–23? Under the revised basal twelvemonth (2022–23), the quarterly GDP estimation model has been strengthened done important methodological improvements, astir notably the displacement from the earlier Pro-Rata benchmarking method to the Proportional Denton method. The caller benchmarking method volition region artificial discontinuities, commonly known arsenic the “step problem,” and ensures smoother and much accordant quarterly bid that amended bespeak underlying short-term movements successful economical activity.25. What caller oregon expanded information sources are being utilized successful quarterly GDP compilation?The caller bid makes wider and much systematic usage of GST information crossed manufacturing and non-financial services sectors. Outward taxable proviso made successful the people of business, are comprehensively covered successful GST data. Growth successful Outward taxable proviso for acrophobic organization assemblage of assorted economical activities is being utilized arsenic precocious frequence indicator successful compilation of quarterly estimates. FISIM-based attack has been adopted for Financial Services astatine the quarterly level.

Estimation methods for Product Taxes and Subsidies person been strengthened utilizing improved measurement indicators, and method for estimating Gross Fixed Capital Formation and Trade successful Services astatine quarterly level are much aligned to the yearly approach. In addition, deflation practices person been improved by moving from aggregate deflators to item-level and sector-specific terms indices, with greater usage of due indices specified arsenic CPI, WPI, Unit Value Indices, and service-specific deflators depending connected sectoral characteristics.26. How has alignment betwixt quarterly estimates and Annual National Accounts been strengthened?The revised quarterly compilation model has been aligned much intimately with the Annual National Accounts methodology successful presumption of sectoral classification, deflation strategies, and estimation practices. This harmonisation ensures greater consistency betwixt quarterly and yearly GDP and GVA estimates.

Also, caller benchmarking method adopted successful quarterly bid volition fortify consistency with yearly nationalist accounts series.

27. What sector-specific refinements and improvements successful deflation practices person been introduced successful Quarterly National Accounts? Several sector-specific refinements person been introduced successful deflation method. Double deflation is adopted for Manufacturing assemblage against the erstwhile signifier of azygous deflation.

Under this approach, outputs and inputs are deflated separately utilizing their respective terms indices starring to much close measurement of existent maturation of manufacturing sector. Further, deflators specified arsenic CPI, WPI, Unit Value Index, etc is being utilized astatine much granular level by moving from aggregate level successful aged bid to item-group level successful caller series.

Further, caller bid of CPI is considered and caller bid of WPI/PPI is being adopted whenever released successful adjacent future. 28. How are the quarterly GDP estimates calculated? NSO, MoSPI calculates the quarterly GDP estimates utilizing Benchmark-Indicator and this is astandard method utilized worldwide pursuing the SNA 2008 and IMF’s Quarterly National Accounts Manual 2017. The method works arsenic follows:

Benchmarking to yearly estimates ensures temporal consistency. High frequence indicators are applied connected the benchmark estimates to deduce the estimates. Due to divergence of information sources of indicators and the yearly estimates successful presumption of explanation and coverage, quarterly estimates are inherently prone to revision.

In the caller series, adoption of proportional Denton benchmarking enhances, incorporation caller information sources and accrued granularity and amended deflation strategy is apt to institute much stableness and robustness of estimates.

29. Whether antecedently released estimates and quarterly maturation rates successful the caller bid volition acquisition change?Yes. As the basal twelvemonth is being changed and the method of calculation is being updated similar adding caller indicators, utilizing much elaborate data, and amended ways to set for inflation, etc.

The yearly and quarterly estimates for the years 2022-23 to 2025-26 arsenic per basal twelvemonth 2022-23 volition beryllium released connected 27 February 2026. 30. What is the relation of MoSPI successful Gross State Domestic Product (GSDP) Estimation? NSO, MoSPI issues the guidelines for estimating the GSDP estimates and helps the States and the Union Territories (UT) to estimation their ain Gross State Domestic Product (GSDP) successful a accordant mode by providing the guidance and proposal pursuing azygous definition, concepts and methodology.

The Directorates of Economics and Statistics (DES) of the States/UTs compiles their GSDP utilizing their State/UT-specific information from the aforesaid information sources mostly.

31. When the GSDP bid with caller basal is expected? When the nationalist GDP basal twelvemonth is updated by NSO, MoSPI, the State/UTs besides update their GSDP basal twelvemonth to match. This keeps the State/UTs’ GSDP estimates accordant with the nationalist estimate. After the GDP with the updated basal twelvemonth 2022-23 is released, NSO, MoSPI volition pass the States/UTs astir the methodological changes oregon improvements successful the mode GSDP is calculated. 32. What large methodological improvements are made successful estimation of GSDP during a caller Base Year revision?Major methodological improvements include: (i) simplification successful allocation-based methods successful favour of nonstop estimation for immoderate sectors oregon sub-sectors, (ii) simplification successful reliance connected fixed ratios and proxies, (iii) improved usage of State-wise accusation of economical activity, (iv) greater methodological consistency crossed States. 33. How the GDP estimates interaction the lives of the communal citizens? GDP estimation is not lone a macro-economic indicator, it is simply a important portion of the quality improvement astatine nationalist level. GDP provides publication of assorted sectors successful the system and helps formulate due policies, which helps radical including farmers, tiny businesses, manufacturers and work enterprises. For example, earlier, successful agriculture, much accent was connected accumulation of crops similar paddy, wheat etc. GDP estimates supply harvest omniscient accumulation figures. Now enhanced absorption is being provided for increasing of fruits, oilseeds, pulses, fisheries assemblage etc. Similarly, enhanced accent is being provided to the manufacturing assemblage by the Government. In summation to this, the concern decisions, capableness to instrumentality indebtedness etc.

are besides influenced by the GDP estimates. Thus, it plays a precise important relation successful each citizen’s lives.