MoSPI has revised the base year for national accounts to 2022-23 to provide more accurate economic data for policy-making. The update is expected to enhance GDP estimates and improve the credibility of India's macroeconomic data.
The revision of the base year for national accounts to 2022-23 will significantly strengthen policy formulation by providing more accurate and granular economic data, Secretary, Ministry of Statistics and Programme Implementation (MoSPI), Saurabh Garg said.
Talking to ANI, Garg said the updated data series is expected to enhance the precision of GDP estimates across states and may also pave the way for district-level GDP assessments. Greater accuracy in economic data will provide policymakers with clearer insights, enabling more informed and data-driven decision-making.
A Broader Update of Macroeconomic Indicators
The Ministry of Statistics and Programme Implementation (MoSPI) on Thursday released the new series of Annual and Quarterly National Accounts Estimates, shifting the base year from 2011-12 to 2022-23. The revision is part of a broader exercise to update key macroeconomic indicators, including the Consumer Price Index (CPI), Gross Domestic Product (GDP), and the Index of Industrial Production (IIP).
Aligning with Global Standards After Delays
He noted that periodic base year revisions are aligned with international best practices, which generally recommend updates every five years or so. However, India's revision process was delayed due to the implementation of the Goods and Services Tax (GST) system and disruptions caused by the COVID-19 pandemic.
"International norms are that the data series should be updated in about 5 years, but the new GST system and then Covid disrupted the process," he said. "There was a need for updation. Over the past decade, there has been a change in the structure of data sets, which necessitated the revision in the base year...For about 2 years, our experts were working and studying on it. They held over 40 meetings," he said.
Boosting Credibility and Investor Confidence
Addressing concerns over a marginal downward revision in the overall size of GDP following the base year change, Garg indicated that such upward or downward adjustments are common when statistical bases are updated. He also pointed out that the updated series strengthens the credibility of India's macroeconomic data.
In late 2025, the International Monetary Fund had assigned India a 'C' rating on national accounts, citing concerns over outdated base year data. The new series is expected to address such concerns by better reflecting the current structure of the economy and aligning with global statistical standards. "The credibility factor that came in with the base year revision in terms of macro data will help India attract investments, among others. It will truly capture the overall economy," Garg said. (ANI)
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