With the release of the growth rate of the Indian economy for the September–December quarter, the government has revised the base year to measure GDP (gross domestic product) from 2011–12 to 2022–23.
The Ministry of Statistics and Programme Implementation on Friday said that the economy grew by 7.8% in the third quarter with the new base year as 2022–23.
This is the first GDP data released with 2022–23 as the base year. The revision in the base year for measuring GDP comes even as the Centre has already changed the base year for measuring inflation and IIP (Index of Industrial Production) to 2024 from 2012.
These changes are not just cosmetic but reflect a major shift in the nature of the Indian economy.
The revisions have been necessitated as consumption patterns in India have changed over the last decade.
While the share of food expenditure has reduced to less than 50%, spending on services like transportation, rent and travel has increased over time, according to the Household Consumption Expenditure Survey 2023–24.
During a press conference on Friday, the Ministry of Statistics said that the changes in base years of various macroeconomic indicators are aimed at capturing structural changes in the economy, improving the measurement methodology and aligning it with the latest international standards.
The new base year series will enhance the use of real-time data such as GST (Goods and Services Tax) numbers, Public Financial Management System data, and administrative data like e-Vahan, rail and air transport services, and fuels.
This will make the measurement more accurate.
