Why in the News?

• India will release a new GDP series with 2022-23 as the base year in February 2026, followed by revised IIP and CPI series, to enhance the accuracy and relevance of key economic indicators.

What’s in Today’s Article?

• National Indicators (Introduction, New GDP, IIP & CPI Series, Measurement Accuracy, Implications, etc.)

Introduction

• The Ministry of Statistics and Programme Implementation (MoSPI) is set to overhaul India’s key macroeconomic indicators, beginning with the release of a new GDP series based on the 2022-23 base year on February 27, 2026.
• This will be followed by updated series for the Index of Industrial Production (IIP) and the Consumer Price Index (CPI), which currently use outdated base years from 2011-12 and 2012, respectively.
• This revision is part of a broader push by the government to ensure more real-time, granular, and representative measurement of India’s dynamic economy, using newer data sources and methodologies.

Updates to National Indicators

• New GDP Series (Base Year 2022-23)
  • The revised GDP series will offer a more accurate reflection of economic activity by updating the reference period from 2011-12 to 2022-23, incorporating the following improvements:

• Use of Goods and Services Tax (GST) data for indirect tax estimates
• Incorporation of UPI transaction data from NPCI
• Data from the E-Vahan portal for vehicle registrations
• Administrative records from MCA-21, RBI, and CGA
• This marks a significant advancement in capturing the informal and formal sectors more comprehensively.

• Revised IIP Series (Base Year 2022-23)
  • Scheduled for release from April 2026, the new IIP series will reflect current industrial structures and consumption patterns.
  • The existing 2011-12 base is now considered outdated due to rapid shifts in manufacturing priorities and technologies.
• Updated CPI Series (Base Year 2024)
  • Expected in early FY2026-27, the new CPI base year will be updated to 2024, capturing recent shifts in household consumption, especially post-pandemic behavioural changes.
  • The new series will also explore alternative data sources for better accuracy, including:

• Online airfare and rail fare data
• OTT subscription prices
• Fuel prices from administrative records
• Scanner data and web scraping for real-time e-commerce pricing

Enhancing Measurement Accuracy

• The upcoming revisions go beyond base year updates and reflect a shift in India’s statistical infrastructure.
• MoSPI is adopting technology-driven and data-diverse approaches to capture economic changes more accurately.
• Key initiatives include:

• Leveraging e-commerce and digital transactions for consumption tracking
• Web scraping and online price surveillance for real-time CPI inputs
• Collaborating with platforms like NPCI for digital payment trends
• Aligning survey frames with GSTN databases for improved service sector measurement

• These changes are part of MoSPI’s effort to adapt to a digitally driven, consumption-diverse economy.

Launch of New Statistical Surveys

• National Household Travel Survey (NHTS)
  • Launched in July 2025, the NHTS will assess travel patterns, choice of transport modes, and price elasticity of demand. The data will support transportation planning and be shared with ministries such as the Railways.
• Domestic Tourism Expenditure Survey (DTES)
  • Also launched in July 2025, DTES will measure household expenditure on domestic tourism, purpose of travel, choice of transport, and use of tourism-specific services.
• Annual Survey of Service Sector Enterprises (ASSSE)
  • Beginning January 2026, the ASSSE will systematically track India’s formal services sector, akin to the Annual Survey of Industries for the manufacturing sector.
  • This is expected to bridge long-standing data gaps on:

• Incorporated service enterprises
• Revenue and employment metrics
• Sectoral composition and regional variations
• MoSPI has already completed a successful pilot study for ASSSE and will use the GSTN database to construct the survey frame.

Implications for Policymaking and Research

• These statistical upgrades are crucial for:

• Policy formulation based on real-time and reliable data
• Private sector and investor decision-making
• International comparability and credibility of Indian economic data
• Better understanding of informal and digital economy shifts

• By diversifying data sources and increasing survey frequency (e.g., Household Consumption Expenditure Survey every three years instead of five), MoSPI is aligning with global best practices in statistical governance.