Union Government has decided to update the base year for compilation of Gross Domestic Product (GDP) from 2011-12 to 2022-23, aiming to provide a more accurate representation of the country’s economic structure. This update is the first in over a decade, with the last revision being done in 2011-12.
This information was given by the Minister of State (Independent Charge) of the Ministry of Statistics and Programme Implementation, Minister of State (Independent Charge) of the Ministry of Planning and Minister of State in the Ministry of Culture, Rao Inderjit Singh in a written reply in the Rajya Sabha today.
In this regard, an Advisory Committee on National Accounts Statistics (ACNAS) chaired by Biswanath Goldar has been constituted. It comprises representatives from Central and State Government, Reserve Bank India, Academia and Researchers has been constituted for identification of new data sources and to advise on the methodology for compilation of National Accounts Statistics in the revised series.
A new base year incorporates changes in consumption patterns, production technologies, and economic policies, ensuring better alignment with ground realities. It also integrates more comprehensive and updated data sources, enhancing the accuracy of GDP calculations.The base year serves as a reference period for calculating real GDP, which adjusts for inflation to provide a clearer picture of actual growth. By updating it to 2022-23, the government aims to reflect significant economic developments so far taken place in the economy.