Revised GDP framework to boost credibility of India's national accounts statistics: Economists
New Delhi, Feb 27
As India moves towards deeper integration in the global value chains, base year updates at regular intervals, current after every five years, it reflects the government's commitment to data-driven policy intervention to shocks in the global economy, economists said on Friday.
New estimates of real GDP at Rs 322.58 lakh crore in FY 2025-26, against the First Revised Estimate (FRE) of GDP for the year 2024-25 of Rs 299.89 lakh crore pegs GDP growth rate at 7.6 per cent, as compared to 7.1 per cent in FRE 2024-25.
Further, nominal GDP is estimated at Rs 345.47 lakh crore in the year 2025-26, against Rs 318.07 lakh crore in 2024-25, showing a growth rate of 8.6 per cent, PHDCCI President Rajeev Juneja said.
Real GVA at Rs 294.40 lakh crore in the year 2025-26, against Rs 273.36 lakh crore in FY 2024-25, registers a growth rate of 7.7 per cent as compared to 7.3 per cent in 2024-25.
"The revised GDP framework will enhance the credibility and analytical usefulness of India's national accounts statistics. The updated methodology is expected to provide policymakers, businesses, and investors with a more accurate picture of economic activity across sectors," he added.
New series integrates multiple data sources such as GST statistics, financial results of listed companies, transport indicators, and digital administrative sources.
This broader data coverage is expected to strengthen measurement of economic output, consumption, investment, and sectoral contributions, and prepare India for the next phase of growth trajectory, Juneja said.
Improved statistical measurement will support data-driven and evidence-based policymaking and facilitate better economic planning.
"Foreign investors, both institutional and non-institutional, that are keen to invest in India's growth story, will see this as reliable and internationally comparable data, which augurs well for increasing India's private capex-driven growth momentum," PHDCCI CEO and SG, Dr Ranjeet Mehta, said.
According to ICRA Ltd's Chief Economist Aditi Nayar, manufacturing GVA encouragingly expanded by double digits for the fifth consecutive quarter in a row in Q3 FY2026, while services GVA growth inched up to a 7-quarter high of 9.5 per cent from 9.3 per cent in the previous quarter.
"ICRA currently believes that there is a higher likelihood of a prolonged pause on the policy rate, amid expectations of a base-led uptick in the CPI inflation in the near term," she said.
— IANS
Reader Comments
Good to see manufacturing growing strong for 5 quarters! 🚀 But the article mentions CPI inflation might go up. I hope the policymakers balance growth with controlling prices. My grocery bill is already pinching.
While the intent to improve credibility is welcome, I have a respectful criticism. We must ensure this revised framework is transparent and its methodology is open for peer review. Past revisions have sometimes led to debates. The credibility will come from consistency and openness, not just new data sources.
As a small business owner, I'm glad they are using GST data. It reflects the actual formal economy activity much better. Hope this accurate picture helps in getting easier loans for MSMEs like us.
International comparability is key for attracting FDI. If foreign investors trust the numbers, it will definitely boost capital expenditure. This is a smart move for long-term growth.
The growth numbers look impressive on paper. But does this revised GDP framework also capture the well-being of the common person? Growth should translate to better jobs and incomes for the middle class and farmers too.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.