India's base year revision for national accounts has raised the GDP growth estimate for 2025-26. The new methodology resulted in an upward revision for the secondary sector but downward adjustments for the primary and services sectors.
India's latest base year revision of national accounts has led to an upward adjustment in GDP growth estimates for 2025-26. The government said that the use of annual surveys for household sector estimates and change in method of deflation improved the GDP estimates.
Sectoral Impact of the Revision
At the sectoral level, the primary sector, comprising agriculture, mining and related activities, saw a marginal downward revision of 0.1 percentage point in growth. The government indicated that there was no significant change in real estimates overall, though crop sector growth was revised upward. The secondary sector, which includes electricity, manufacturing and construction, recorded a 0.2 percentage point upward revision. Growth was revised higher for segments such as electricity, gas, water supply and remediation services, along with manufacturing of optical products, coke and refined petroleum products, iron and steel, and food products. In contrast, the tertiary or services sector experienced a 2 percentage point downward revision in growth. Revisions in trade and repair services, air transport, communication and transport-related services were made.
Details of the New Base Year (2022-23)
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. The Financial Year (FY) 2022-23 has been selected as the base year, as it represents a recent normal year (after COVID), with availability of robust and comprehensive data across sectors of the economy, making it an appropriate benchmark for the new series of Annual and Quarterly National Accounts Estimates. The Ministry of Statistics and Programme Implementation is revising the base year for key macroeconomic indicators--CPI, GDP, and IIP.
Revised GDP Growth Estimates and Projections
In late 2025, the International Monetary Fund (IMF) assigned India a 'C' rating on national accounts, citing outdated data. The base year was perceived to be outdated by the IMF. 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. Under the old series, the GDP was estimated to grow 7.4 per cent in the current financial year. 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). In the October-December quarter, the economy grew 7.8 per cent, in real terms, data showed.
Under the new series, the GDP estimates for next year 2026-27 has also been raised to 7-7.4 per cent, as against the projected 6.8-7.2 per cent growth in the recently tabled Economic Survey document.
Sustained Economic Performance
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. According to official data, the economy grew 8.7 per cent and 7.2 per cent, respectively, in 2021-22 and 2022-23. (ANI)
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