Our Bureau
New Delhi
India is set to launch a fresh way to measure its economic growth this week. The government will release new Gross Domestic Product (GDP) data on February 27, using 2022-23 as the base year. This change aims to make numbers more precise and fix old problems pointed out by experts.
Real GDP shows true growth after removing inflation effects. Before, it used mainly the Wholesale Price Index (WPI), which many said was outdated. Now, officials will use 500-600 items from both the new Consumer Price Index (CPI) and old WPI, up from just 180 items. This “double deflation” method adjusts output and input costs separately, especially helping manufacturing data.
Saurabh Garg, Secretary at the Ministry of Statistics and Programme Implementation, said these steps will improve accuracy until a new WPI arrives soon. The update includes new sources like GST records, vehicle sales, and UPI payments to capture the informal sector better. It follows a new CPI series and comes amid International Monetary Fund concerns over the old 2011-12 base.
India’s economy is projected to grow at 7.4% for 2025-26, from 6.5% last year. Back data for four prior years will also be updated.
This overhaul boosts trust in India’s stats as the world’s quickest major economy expands. It aligns GDP with modern tools like GST for sharper policy decisions.
