India Unveils Revised GDP Series with 2022–23 Base Year

The Indian government on Friday introduced a new series for Annual and Quarterly National Accounts, updating the base year to 2022–23 from the previous 2011–12 base. The revision aims to offer a more precise insight into the country's economic growth, accommodating changes that have occurred over time.

This delay in revising the GDP base year was largely due to disruptions from the Covid-19 pandemic and the implementation of Goods and Services Tax (GST) in 2017-18, which required additional time for consolidation. The sharp GDP growth witnessed in fiscal 2021-22, attributed to post-COVID recovery, was deemed unsuitable for revising the base year.

The new GDP series incorporates actual level estimates using regular surveys like the Annual Survey of Unincorporated Sector Enterprise (ASUSE) and the Periodic Labour Force Survey (PLFS). Key methodological changes include improved dynamism in the household sector measurement and enhanced accuracy in estimating sectors like digital services and the gig economy.