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India Revises GDP Base to 2022-23, Growth Seen Robust at 7.4%

India is updating its GDP calculation base year from 2011-12 to 2022-23 to better reflect the modern economic structure, including digital commerce. The revision will incorporate more granular data sources like GST records and vehicle registrations for improved accuracy. Despite global challenges, the domestic economy shows strong momentum with FY26 growth estimated at 7.4%. Quarterly growth for Q3 FY26 is projected to be robust, potentially around 8.3%, according to bank reports.

Key Points: India GDP Base Year Revision to 2022-23 Aims for Accurate Growth Data

  • Base year revision to 2022-23
  • Enhanced use of GST data
  • Better measurement of informal sector
  • Growth estimate of 7.4% for FY26
2 min read

India's GDP growth set to remain robust with new base year

India updates GDP base year to 2022-23, incorporating GST data for better accuracy. Growth estimated at 7.4% for FY26, with Q3 projections around 8%.

"GDP growth for the third quarter... is likely to remain elevated at 8.3 per cent despite an adverse base effect - Union Bank of India report"

New Delhi, Feb 27

As the new GDP series is scheduled to be released on Friday, a sub-committee set up by the Ministry of Statistics and Programme Implementation has also recommended an enhanced use of GST data in the new series for GDP estimates.

The report of the sub-committee forms part of the process launched by MoSPI to revise the base year of the National Accounts to FY 2022-23.

In the 2011-12 series, GST data were used to compile the Quarterly National Accounts and in some sectors of the Annual National Accounts.

India is updating its GDP base year from 2011-12 to 2022-23. This revision, along with an updated CPI base (2024), aims to better reflect the current economic structure, including increased digital commerce and service.

The overhaul includes better measurement of the informal sector and new data sources like GST, potentially placing India as the world's fourth-largest economy. The new methodology will incorporate more granular data, including GST records, e-Vahan (vehicle registrations), and information on natural gas consumption.

As per the first advance estimate, GDP is estimated to growth at 7.4 per cent in FY26, with growth largely driven by domestic demand.

According to SBI research, India's GDP growth in the third quarter of FY26 is likely to come at 8-8.1 per cent and domestic economy has maintained strong growth momentum despite global headwinds. High-frequency activity data indicates resilient economic activity in Q3 FY26 (October-December 2025).

The GDP growth for the third quarter of the current financial year (Q3 FY26) is likely to remain elevated at 8.3 per cent despite an adverse base effect, according to another report by Union Bank of India.

The Second Advance Estimates of GDP for 2025-26 along with past 3 financial years' GDP estimates, as well as Quarterly GDP estimates as per the new base 2022-23, will be released on Friday.

- IANS

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Reader Comments

P
Priya S
Hope this new methodology also captures the ground reality for small businesses and the informal sector better. Sometimes GDP numbers feel disconnected from what we see in our local markets. If it includes e-Vahan and gas data, that's good for accuracy.
R
Rohit P
7.4% growth projected is fantastic, especially with all the global issues. Our domestic demand is really strong. Makes me optimistic about job creation and investment opportunities.
S
Sarah B
As someone who follows economics, revising the base year is a standard statistical practice. The key is transparency. MoSPI must clearly explain the new methodology and back-series data so comparisons with past growth are meaningful. A good move if done right.
V
Vikram M
Becoming the 4th largest economy is within reach! This data overhaul is crucial. The world needs to see India's true economic size and potential. Jai Hind!
K
Karthik V
While the growth numbers sound impressive, I hope this revision doesn't just become an exercise in statistical uplift. The real test is whether this robust GDP translates into better per capita income and living standards for the common person. The focus should remain on inclusive growth.

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