India to revise GDP base year from 2011-12 to 2022-23

The Government of India is set to update the base year for calculating Gross Domestic Product (GDP) from 2011-12 to 2022-23, aiming to provide a more accurate representation of the country's economic structure. This update is the first in over a decade, with the last revision being done in 2011-12.

This information was given by the Minister of State (Independent Charge) of the Ministry of Statistics and Programme Implementation, Minister of State (Independent Charge) of the Ministry of Planning and Minister of State in the Ministry of Culture, Rao Inderjit Singh in a written reply in the Rajya Sabha today.

To oversee the transition, a 26-member Advisory Committee on National Accounts Statistics (ACNAS), chaired by Biswanath Goldar, has been tasked with identifying new data sources and refining the methodology for compiling National Accounts Statistics. This committee includes representatives from the Central and State Governments, Reserve Bank of India, academia, and researchers.


Need for base year revision
Regular updates to the GDP base year are crucial to accurately reflect structural changes in the economy, including shifts in consumption patterns, sectoral contributions, and the inclusion of emerging sectors. By aligning with the economic realities of 2022-23, the revised series will offer a more precise framework for policymaking and analysis.

The government has also taken several measures to enhance the statistical system, including:

• Standardizing Data Structures: Ensuring uniform quality reporting across the National Statistical System.
• Leveraging Administrative Data: Promoting better accuracy and comprehensiveness in statistical compilations.
• Economic Census: MoSPI has initiated processes to launch a new economic census to provide granular data on economic activities.

New monthly Labour Force estimates
Starting January 2025, MoSPI will release monthly estimates of the Periodic Labour Force Survey (PLFS), providing more frequent insights into employment trends across the country.

Speaking at an event last week, Saurabh Garg emphasized the importance of data-driven decision-making and robust data governance through uniform guidelines. However, he highlighted challenges, such as reluctance among some affluent neighborhoods to participate in government surveys, which could affect data collection efforts.