The government of India is planning to change the base year for GDP computation to 2022-23 from 2011-12. This will be the first change in the past decade, and it has been a long time since the change. Thus, setting up a new base year will make it better to analyse the country’s current growth. The government changes this base year every 5-10 years to more accurately analyse whether the country is progressing or falling. The process is anticipated to conclude by early 2026.
India to Update GDP Base Year to 2022-23 for More Accurate Economic Analysis
The government is taking the move to change the base year for GDP computation to 2022-23. The main reason behind this is to get an accurate picture of the current progress of the economy. The 26-member Advisory Committee on National Accounts Statistics (ACNAS), chaired by Biswanath Goldar, aims to finalize the process by 2026. Ministry of Statistics and Programme Implementation (MoSPI) secretary Saurabh Garg says that the ministry will come up with monthly estimates of the Periodic Labour Survey (PLFS) from January 2025.
Why is it important to update the base year for GDP computation? It is important because it helps in reflecting the changes in the economy’s structure. As the consumer’s patterns of consumption keep changing, it is important to set a new base year for GDP consumption. Other elements, such as the inclusion of emerging sectors and adjustments to sectoral weights, also undergo continuous evolution. This highlights the imperative for precision in economic forecasting. Thus, this is one of the ways through which accurate predictions can become possible.
Several countries have already changed their base year to 2017 or 2018. Thus, India also needs to update their base year. The country is moving fast towards growth. Thus, the opportunities are growing. However, it is also crucial to monitor the progress. Otherwise, we won’t be able to excel at the right speed and in the right direction. India has a big goal to become a developed country. Thus, these are some important steps one can follow to achieve their desired goals.
An updated base year ensures more accurate economic forecasts, paving the way for a brighter future for the nation. The revision is set for February 2026, and anticipation surrounding these changes continues to grow. Updation of the base year also helps in recognising the emerging new sectors in business. Mr Garg also pointed out towards the start of the Economic census promoted data-driven decision-making. Stay tuned for more information on our website.