- Overview: The Ministry of Statistics and Programme Implementation (MoSPI) revolutionized India’s GDP calculation by updating the base year from 2011-12 to 2022-23, pushing the FY26 growth projection to a robust 7.6%.
- Key Points:
- Methodological Overhaul: The new series integrates high-frequency digital indicators like GST data, e-Vahan registrations, and the Public Finance Management System (PFMS).
- Sectoral Accuracy: Improved capture of the unorganized sector using the Annual Survey of Unincorporated Sector Enterprises (ASUSE), ensuring dynamic informal sector representation.
- Double Deflation Implementation: Replaced single extrapolation with ‘double deflation’ in manufacturing and agriculture, providing a truer picture of value addition.
- Economic Resilience: Despite global tariff pressures, manufacturing registered double-digit growth, cementing India’s position as the fastest-growing major economy.
- Syllabus Relevance: Core Economy (GS-III), Prelims Conceptual Clarity on National Income Accounting.
Source Link: MoSPI Official Statistics Releases
- Q5. In the context of national income accounting, what does the term ‘Double Deflation’ refer to?
- A) Adjusting only the final output for inflation twice a year.
- B) Deflating both the gross output and the intermediate inputs separately to calculate real Gross Value Added (GVA).
- C) Using two different base years simultaneously to cross-verify GDP.
- D) Calculating GDP by removing the impact of both direct and indirect taxes.
