GDP rebasing realigns India’s fiscal storyline

THE NEW GROSS Domestic Product (GDP) series with a base year 2022-23 has generally uplifted magnitudes of national income aggregates at constant prices and reduced these at current prices.

- DK SRIVASTAVA

Accordingly, 2025-26 real GDP growth has been increased to 7.6% (second advance estimates) in the 2022-23 base series, compared to 7.4% (first advance estimates) in the 2011-12 series. Real GVA growth for 2025-26 stands at 7.7% in the new base series, compared to 7.3% in the old series. The main reason for this is an increase in the growth of manufacturing to 11.5% in the new series, compared to 7.0% in the old series in 2025-26. On the basis of current prices, however, nominal growth has been shown to grow at 11.0% in 2023-24, 9.7% in 2024-25, and 8.6% in 2025-26. These may be compared with corresponding growth rates of 12.0%, 9.8% and 8.0% in the respective years as per the old series. Thus, the volatility in the nominal growth series has come down marginally in the new series.

Structural changes due to shift in compositional weights