REVISION FOR BASE YEAR GDP,CPI & IIP : ECONOMY

NEWS : Centre proposes 2022-23 as new base year for GDP computation

 

WHAT’S IN THE NEWS ?

The Centre is proposing 2022-23 as the new base year for GDP calculations, with the first data expected to be published by February 2026. This revision comes under the Ministry of Statistics and Programme Implementation (MoSPI), and a similar base year revision is proposed for both the Consumer Price Index (CPI), which measures retail inflation, and the Index of Industrial Production (IIP), which tracks factory output growth.

 

Proposed Base Year Revision for GDP, CPI, and IIP:

  • New Base Year: 2022-23 (for GDP, CPI, and IIP).
  • First GDP Data Release: Expected in February 2026.
  • Previous Base Year for GDP: Changed in 2015 from 2011-12.

Criteria for Base Year Selection:

  • A "normal" year without major disruptions.
  • 2022-23 chosen as the best possible normal year despite global challenges.

Advisory Committee on National Account Statistics (ACNAS):

  • Proposed by MoSPI, with 26 members.
  • Chaired by Prof Biswanath Goldar.
  • Includes representatives from academia, RBI, ministries, and state governments.

New Data Sources for GDP Calculation:

  • Household Consumption Expenditure Survey 2023-24.
  • Annual Survey of Unincorporated Sector Enterprises 2022-23.
  • GST Data.

Technology Integration for Data Collection:

  • e-Sigma Portal: Cloud-based system for survey data processing.
  • e-Sankhyiki Portal: Improves public access to data.

Upcoming Surveys:

  • New surveys on domestic tourism, national household travel, and health expenses as part of the next National Sample Survey.

Employment-Unemployment Data:

  • Flash employment-unemployment data to be released in February 2025.
  • Provides unemployment figures for rural and urban areas.