India revises GDP base year to 2022-23 for data precision: MoSPI

MoSPI has revised India's GDP base year to 2022-23 from 2011-12. Secretary Saurabh Garg cited structural economic shifts and the need for data precision. This move addresses IMF concerns and incorporates new data sources like GST.

Emphasising the need to modernise India's economic data framework, Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (MoSPI), on Friday said the revision of the GDP base year was essential to reflect structural changes in the economy and improve data precision.

Why the GDP Base Year Was Updated

Speaking on the new GDP series with 2022-23 as the base year, Garg said, "Our existing series was based on the year 2011-2012. The international norm is that this should happen every five to seven years. However, due to COVID-19, we transitioned to a new financial system, and GST was introduced, which caused a slight delay."

He added that rapid digital penetration and structural shifts in the economy over the past decade made it necessary to update the base year. "Furthermore, the existing data sources had evolved significantly. Due to the impact of digital penetration over the past decade and the changes in the structure of the economy, it was essential to correct the base year. Therefore, we chose 22-23 as the base year...Our experts worked for two years to change this system...We are confident that any decisions made and regulations made on this basis will be even more precise and robust," Garg said.

Addressing IMF Concerns

The Ministry of Statistics and Programme Implementation has released the new series of Annual and Quarterly National Accounts Estimates, replacing the earlier 2011-12 base year series. The revision comes after the International Monetary Fund flagged concerns in late 2025 over outdated base year data and gaps in informal sector coverage.

Addressing these concerns, Garg said, "Our existing data was accurate and robust, and the main reason the IMF pointed out, the concern about which it expressed, was that our base was more than ten years old. It was 2011-2012. They believed these changes should be reflected more appropriately. Another area of concern was that the data sources for our informal sector weren't accurate enough."

"However, for the past three years, we've been conducting an annual survey. It's ongoing in the informal sector. We now conduct our employment survey monthly, and GST data is also available. So, we've addressed the few areas of concern and doubt in the data, and we hope that these changes will be factored into the next assessment," he added.

India's Economic Growth Outlook

India's real GDP is estimated to grow by 7.6 per cent in the current financial year 2025-26, Ministry of Statistics and Programme Implementation (MoSPI) estimates showed Thursday. Nominal GDP, which includes consumer inflation, is pegged at 8.6 per cent, the government said. Overall economic performance in 2025-26 is primarily on account of robust real growth observed in the second quarter (8.4 per cent) and the third quarter (7.8 per cent).

Sustained Performance and Key Drivers

In the October-December quarter, the economy grew 7.8 per cent, in real terms, data showed. The Indian economy has exhibited sustained performance, recording real GDP growth rates of 7.2 per cent and 7.1 per cent respectively during 2023-24 and 2024-25. Nominal GDP has registered 11.0 per cent and 9.7 per cent growth rates during 2023-24 and 2024-25, respectively.

The manufacturing sector has been the major driver in contributing to the resilient performance of the economy in the consecutive three financial years after rebasing. This sector has attained double-digit growth rates in 2023-24 and 2025-26. Secondary and tertiary sectors have boosted the performance of the economy by registering above 9.0 per cent growth rate in 2025-26.

The Ministry of Statistics and Programme Implementation (MoSPI) released the New Series of Annual and Quarterly National Accounts Estimates with a base year of 2022-23, which replaces the previous series with a base year of 2011-12. (ANI)

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