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Centre Plans GDP Base Year Shift to FY23, Says FM Sitharaman
PrintNEW DELHI: Finance Minister Nirmala Sitharaman said on Wednesday that the government will update the base year used for calculating GDP from 2010-11 to 2022-23. She also dismissed concerns raised in an IMF report about the quality of India’s data.
She explained that the new base year, along with an updated list of goods and services, will better reflect how people’s consumption habits have changed over the past 15 years. Data using the new base year will be released on February 27, while the first advance estimate (based on the current base year) will come out on January 7. Next year, the government will also update the base years used for inflation and industrial production data. India’s data system has been under review, and experts believe an update is necessary to capture changes in the digital economy.
Recently, the IMF, in its annual report, made negative remarks about the quality of India’s data and suggested improvements.
Responding to this in the Lok Sabha, Sitharaman said that the IMF’s overall report was actually positive about India’s economy. She pointed out that the IMF expects India’s GDP to grow at 6.5% in 2025-26 and has praised strong private sector growth, macroeconomic stability, and the resilience of the financial system. The IMF also noted that inflation is below the RBI’s target range and is expected to average 4.3% for the year.
She clarified that the only criticism—the ‘C’ grade—was given because India is still using the old 2011-12 base year for its GDP calculations. “The IMF has not questioned India’s growth numbers,”she said.
According to the latest NSO data, India’s GDP grew by a strong 8.2% in the July–September quarter, after 7.8% growth in the first quarter of the financial year.
She explained that the new base year, along with an updated list of goods and services, will better reflect how people’s consumption habits have changed over the past 15 years. Data using the new base year will be released on February 27, while the first advance estimate (based on the current base year) will come out on January 7. Next year, the government will also update the base years used for inflation and industrial production data. India’s data system has been under review, and experts believe an update is necessary to capture changes in the digital economy.
Recently, the IMF, in its annual report, made negative remarks about the quality of India’s data and suggested improvements.
Responding to this in the Lok Sabha, Sitharaman said that the IMF’s overall report was actually positive about India’s economy. She pointed out that the IMF expects India’s GDP to grow at 6.5% in 2025-26 and has praised strong private sector growth, macroeconomic stability, and the resilience of the financial system. The IMF also noted that inflation is below the RBI’s target range and is expected to average 4.3% for the year.
She clarified that the only criticism—the ‘C’ grade—was given because India is still using the old 2011-12 base year for its GDP calculations. “The IMF has not questioned India’s growth numbers,”she said.
According to the latest NSO data, India’s GDP grew by a strong 8.2% in the July–September quarter, after 7.8% growth in the first quarter of the financial year.
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