India to Update GDP Base Year to 2022-23 for Enhanced Economic Accuracy by 2026
The government plans to change the base year for calculating GDP to 2022-23, starting in February 2026. This adjustment aims to provide a clearer view of the economy. This will be the first update in over a decade; the last change occurred in 2011-12.
Saurabh Garg, Secretary of the Ministry of Statistics and Programme Implementation (MoSPI), announced this at an event. He stated that the 26-member Advisory Committee on National Accounts Statistics (ACNAS), led by Biswanath Goldar, is expected to finish the work by early 2026.
Updating the base year is crucial for accurately reflecting changes in the economy, such as shifts in consumption patterns and the introduction of new sectors. Garg also mentioned that starting in January, the ministry will release monthly estimates from the Periodic Labour Force Survey (PLFS).
How will the transition to the new base year impact economic policies and labor dynamics?
Interview with Saurabh Garg, Secretary of the Ministry of Statistics and Program Implementation (MoSPI)
Interviewer: Thank you for joining us, Mr. Garg.Recently, the government announced plans to change the base year for calculating GDP to 2022-23, effective February 2026. Can you explain the meaning of this adjustment?
Saurabh Garg: thank you for having me. Updating the base year for GDP calculation is crucial for providing a more accurate reflection of our economy. Since the last revision in 2011-12, ther have been notable shifts in consumption patterns, the introduction of new sectors, and changes in economic dynamics. By adopting 2022-23 as the new base year, we aim to capture these changes and offer a clearer, more relevant picture of our nation’s economic health.
Interviewer: You mentioned the Advisory Committee on National Accounts Statistics (ACNAS) will be instrumental in this process.What are their main responsibilities, and how are they approaching this task?
Saurabh Garg: the ACNAS, led by Biswanath Goldar, is tasked with ensuring that the transition to the new base year is thorough and scientifically sound. Their responsibilities include analyzing current economic data, considering methodological updates, and ensuring that any adjustments made accurately represent the shifts in our economy. They are expected to complete their work by early 2026.
Interviewer: How will the new base year affect the way data is gathered and utilized moving forward?
Saurabh Garg: With the new base year, we will have updated benchmarks that reflect the current economic landscape. this will enhance the relevance of the data we use for policy making and economic analysis. Additionally, starting in January, we’ll begin releasing monthly estimates from the Periodic Labour Force Survey (PLFS), which will also contribute to a more thorough understanding of labor dynamics in the country.
Interviewer: You’ve pointed out the importance of data-driven decision-making.Can you elaborate on how the ministry plans to promote this?
Saurabh Garg: Promoting data-driven decision-making is critical for effective governance. We are working on improving data governance by implementing uniform guidelines for data collection and analysis. This ensures consistency and reliability across different surveys and reports. However, we face challenges, such as some affluent neighborhoods being hesitant to participate in our surveys, and we are actively working to address these concerns.
Interviewer: thank you for your insights, Mr. Garg. Given the challenges and changes ahead, what is your message to both the data providers and consumers?
Saurabh Garg: I encourage data providers to engage with us transparently and to recognize the critical role their participation plays in the nation’s economic understanding. For data consumers—policymakers, researchers, and the general public—understand that these changes are designed to create a more accurate and beneficial economic narrative for everyone.Let’s work together towards data modernization and its effective application in our decision-making processes.
Interviewer: Thank you for your time, Mr. Garg.We appreciate your insights into this important issue.
Additionally, he emphasized the importance of promoting data-driven decision-making and improving data governance through uniform guidelines. Garg expressed concern that some wealthy neighborhoods are hesitant to participate in the ministry’s surveys.