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India has changed its GDP base year to 2022-23, using new methods and data for more accurate economic measurement and better policymaking.
This is the eighth revision of India’s national accounts base year.
India’s New GDP Series With Base Year 2022-23: Gross Domestic Product (GDP) is the primary indicator used to measure the size of an economy and its growth rate. To calculate real growth, statisticians compare output in different years after removing inflation. This requires selecting a reference point called the base year. Prices prevailing in that year are treated as constant, allowing economists to distinguish actual production growth from mere price increases. India has now shifted its GDP base year to 2022-23, meaning future real growth calculations will be measured relative to price levels in that year. This is the eighth revision of India’s national accounts base year.
Also Read: India’s GDP Grows 7.8% In October-December; FY26 Economic Growth Pegged At 7.6%: New Series Data
Key methodological changes in the new series
Shift from single to double deflation
One of the most significant revisions is the adoption of the double-deflation method for calculating real Gross Value Added (GVA). Earlier, most sectors used a single deflator to adjust nominal output for inflation. That approach sometimes overstated growth when input costs behaved differently from output prices. The new method adjusts both inputs and outputs separately using sector-specific inflation measures. This improves accuracy and reflects real economic activity more precisely.
More granular price adjustments
Deflators are now applied at a more detailed level across sectors, allowing finer measurement of real output. This reduces distortions that arise when broad price indices are used for diverse industries.
Integration of new datasets
The revised series incorporates multiple fresh data sources such as GST filings, e-Vahan vehicle registration data, the Annual Survey of Unincorporated Sector Enterprises, and the Periodic Labour Force Survey. Using administrative and survey-based datasets together improves coverage of formal as well as informal activities and reduces reliance on proxies.
Alignment with Supply and Use Tables
National accounts have been integrated with Supply and Use Tables to reduce discrepancies between GDP estimates derived from production and expenditure approaches. This helps reconcile inconsistencies and strengthens reliability.
Improved quarterly estimation method
The new series adopts the internationally recommended Denton proportional benchmarking method for constructing quarterly GDP data. This technique blends high-frequency indicators with annual benchmarks while preserving short-term trends. It replaces the earlier pro-rata method and is expected to reduce artificial jumps between quarters and align quarterly estimates more closely with annual figures.
Why the government revised the base year
Reflecting structural changes in the economy
India’s economic structure has transformed significantly over time. In the early decades after independence, agriculture dominated output. Today, services contribute roughly 55% of GDP while agriculture accounts for less than one-fifth. Different sectors require different estimation techniques and datasets. Updating the base year ensures that measurement methods reflect the current structure of the economy rather than outdated patterns.
Capturing better and newer data
Statistical systems evolve as new datasets become available and technology improves data collection. Revising the base year allows statisticians to incorporate improved surveys, administrative records, and updated international standards.
Selecting a ‘normal’ reference year
The year 2022-23 was chosen because it represents the most recent period unaffected by major disruptions. The years 2019–20 and 2020–21 were heavily distorted by the pandemic, which temporarily altered consumption, employment, and production patterns. Using a stable year as the base ensures more meaningful comparisons.
Keeping statistical series up to date
Historically, India revised its base year roughly once a decade. Later, after methodological improvements and recommendations from statistical bodies, revisions began occurring about every five years. Regular rebasing keeps national accounts aligned with evolving economic realities and statistical best practices.
Institutional process behind the revision
The Ministry of Statistics and Programme Implementation set up an Advisory Committee on National Account Statistics under economist B N Goldar to review methodology and data sources. A sub-committee focused specifically on improving estimation techniques across GDP components. Their recommendations guided the shift to the new base year and updated framework.
Historical background
India’s first national income estimates were prepared by the National Income Committee chaired by P C Mahalanobis in 1949, with reports released in 1951 and 1954. Since then, statistical authorities have periodically refined methods, expanded coverage, and updated datasets to improve accuracy.
Why this matters for the economy
GDP data influence policy decisions, interest rates, fiscal planning, corporate strategy, and investment analysis. A revised base year does not change the underlying economy itself, but it can alter growth estimates because calculations become more precise. Better measurement leads to better policymaking and more informed decisions by businesses and households.
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February 27, 2026, 17:27 IST
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