A new series for a new economy

IT INTRODUCES SEVERAL IMPORTANT METHODOLOGICAL CHANGES AIMED AT IMPROVING ACCURACY & RELEVANCE

- SAUMITRA BHADURI

THE MINISTRY OF statistics and programme implementation has released a new GDP series with 2022-23 as the base year. It has also published revised data for the previous years. This follows the update of the inflation basket earlier this month to better reflect current spending patterns. These changes are not routine revisions. They mark a reset in how India measures its economy in a rapidly evolving data environment.

Under the new base series, real GDP growth for FY26 is estimated at 7.6%, with nominal GDP growing at 8.6%, both revised upward from the first advance estimates of 7.4% and 8% on the earlier 2011-12 base. The upward revision reflects stronger-than-expected momentum in the second and third quarters, with real growth reaching 8.4% and 7.8%. The new number also indicates the economy has shown sustained growth over the past two years, recording real growth of 7.2% in FY24 and 7.1% in FY25, alongside nominal growth of 11% and 9.7%. The rebased series places greater emphasis on manufacturing and services, with the manufacturing sector recording double-digit real growth of 12.3% in FY24 and 10.6% in FY26. In contrast, under the 2011-12 base estimates, manufacturing growth for FY24 was assessed lower at around 9%, and the first advance estimate for FY26 did not indicate double-digit expansion.