GDP Base Year Revision To 2022-23: Centre Forms Panel - What Does It Mean?

The government has decided to update the base year for compiling Gross Domestic Product ( GDP ) from 2011-12 to 2022-23. This move aims to provide a more accurate representation of India’s economic activity by reflecting recent data trends.

GDP Base Year: Role of the Advisory Committee

An Advisory Committee on National Accounts Statistics (ACNAS) has been formed to oversee this transition. Comprising representatives from central and state governments, the Reserve Bank of India, academia, and researchers, the committee is tasked with identifying new data sources and refining methodologies for compiling national accounts.

GDP Base Year: Steps to Improve 

The government has undertaken several measures to enhance the quality of economic data, including: 

• Standardizing data structures to ensure consistent reporting.
• Leveraging administrative data to improve reliability.
• Reconstituting ACNAS, which now includes 26 members, chaired by Biswanath Goldar, former professor at the Institute of Economic Growth.

GDP Base Year: Current and Historical Context

Currently, the 2011-12 base year is used for key macroeconomic indicators like GDP, IIP, CPI, and WPI. The 2011-12 series was introduced in 2014, with data published in early 2015. India’s GDP growth in July-September 2024 declined to 5.4 per cent, which is a 7-quarter-low level.

The shift to the 2022-23 base year reflects the government’s effort to modernize and align national accounts with the evolving economy. This update was confirmed by Rao Inderjit Singh, Minister of State for Statistics, Planning, and Culture, during a Rajya Sabha session.