India has carried out a major base year revision of its key economic data. Notably, GDP and the Index of Industrial Production (IIP) now use 2022–23 as the base year. Meanwhile, the Consumer Price Index (CPI) uses 2024. Moreover, India plans to align with the new UN accounting standard, SNA 2025.
New Base Years
- GDP: 2022–23 (earlier 2011–12)
- CPI: 2024 (earlier 2012)
- IIP: 2022–23 (earlier 2011–12)
Why Rebasing Is Needed
The economy changes a lot over a decade. For example, new sectors such as digital services and e-commerce have grown. Also, people’s consumption patterns have shifted. Therefore, old base years no longer reflect today’s economy. So, rebasing makes data more accurate.
Better Data Sources
The new series uses better and newer data. For instance, it draws on GST data and the Public Financial Management System (PFMS). Similarly, it uses e-Vahan data on vehicle registration. Also, the Household Consumption Expenditure Survey (HCES) helps update the CPI basket. Thus, the numbers rest on richer information.
Global Standards
India compiles GDP under the 2008 System of National Accounts (SNA 2008). However, the UN Statistical Division is moving to SNA 2025. Countries may adopt it around 2029–30. Hence, India plans to align with SNA 2025 in its next base year revision.
What the Base Year Means
The base year is a reference year for comparing prices and output. In simple words, it is like a fixed point on a scale. For example, real GDP uses base-year prices to remove the effect of inflation. Therefore, the right base year is vital for correct growth figures.
Why Base Year Revision Matters for UPSC and UKPSC
Notably, base years are a classic economy question in prelims. So, remember the new base years for GDP, CPI and IIP. Also, note the SNA 2025 plan. For official updates, also visit MoSPI. Next, for a related story, read about five states crossing the upper-middle-income line.
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