The Ministry of Statistics and Programme Implementation (MoSPI) has released a new series of Gross Domestic Product (GDP) estimates with base year 2022-23, replacing the earlier 2011-12 base year series.
The revision aims to better capture structural changes in the economy, incorporate new and granular data sources, enhance estimation methodologies, and improve overall accuracy and coverage of India's national accounts.
Why Base Year Revision Matters
Base year revisions are periodically undertaken in line with international standards, including guidelines of the International Monetary Fund (IMF). Unlike routine annual revisions, a base year revision introduces methodological improvements, new surveys, updated sectoral data, and improved deflation strategies to reflect the evolving structure of the economy.
FY 2022-23 was selected as the new base year as it represents a post-pandemic normal year with comprehensive data availability across sectors.
India's GDP Growth: Key Highlights
Annual GDP Estimates (FY 2025-26 – Second Advance Estimates)
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Real GDP (Constant Prices): ₹322.58 lakh crore
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Growth rate: 7.6% (compared to 7.1% in FY 2024-25)
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Nominal GDP (Current Prices): ₹345.47 lakh crore
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Growth rate: 8.6%
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Real GVA: ₹294.40 lakh crore (7.7% growth)
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Nominal GVA: ₹313.61 lakh crore (8.7% growth)
The growth momentum is driven primarily by manufacturing, construction, mining, financial services, and real estate sectors.
Quarterly GDP Performance (Q3 FY 2025-26)
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Real GDP: ₹84.54 lakh crore
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Growth: 7.8% (Year-on-Year)
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Nominal GDP: ₹90.91 lakh crore
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Growth: 8.9%
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Real GVA: ₹77.38 lakh crore (7.8% growth)
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Nominal GVA: ₹82.58 lakh crore (8.2% growth)
Major Improvements in the New GDP Series
The updated series introduces several key methodological enhancements:
Double Deflation in Manufacturing
Manufacturing and agriculture now use double deflation techniques for more precise constant price estimates.
Integration of Supply Use Table (SUT) Framework
Integration of SUT with National Accounts reduces discrepancies between production and expenditure approaches.
Use of New Data Sources
New and digitized datasets have been incorporated, including:
- GST data
- Public Finance Management System (PFMS)
- MCA corporate filings
- e-Vahan vehicle registration data
- ASUSE and PLFS surveys
Improved Household Sector Measurement
The household sector is now measured using annual survey-based level estimates instead of proxy indicators.
Sectoral Growth Trends (FY 2024-25)
- Primary Sector: 4.9% growth
- Secondary Sector: 8.0% growth
- Tertiary Sector (Services): 7.9% growth
Manufacturing, mining, construction, financial services, and professional services have significantly contributed to overall economic expansion.
Savings, Capital Formation and Consumption
- Gross Savings (FY 2024-25): ₹111.13 lakh crore
- Household sector contributes 62.1% of total savings
- Gross Capital Formation (GCF): ₹109.25 lakh crore
- GCF to GDP ratio: 34.3%
Private Final Consumption Expenditure (PFCE) remains stable at 56.5% of GDP at current prices.
Per Capita Income
Per Capita Net National Income at current prices:
- FY 2022-23: ₹1,59,557
- FY 2023-24: ₹1,76,465
- FY 2024-25: ₹1,92,774
The rise reflects steady improvement in income levels and household consumption trends.
Back Series and Future Releases
MoSPI has indicated that back series data recalculated using the new methodology will be released by December 2026. The Provisional Estimates for FY 2025-26 along with Q4 GDP data will be released on May 29, 2026.
What This Means for India
The new GDP series with base year 2022-23 reflects India’s structural transformation, digitization of data systems, improved statistical robustness, and alignment with global standards. It strengthens transparency, policy formulation, and economic planning as India advances toward its long-term vision of becoming a developed economy.
The detailed statements and comparative tables are available on the official MoSPI website.
Official copy of the Press Release: Click Here
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