The Ministry of Statistics will significantly expand the data used to calculate India’s Gross Domestic Product (GDP) in the upcoming series with a base year 2022-23, aiming to improve the accuracy of growth estimates. The revised series, scheduled for release on Friday, will use nearly 600 item level data indicators under what is known as the “double deflation” method, more than three times the current 180 level data used for price adjustment.
A senior official said that once the national GDP numbers under the new base year are released, work will begin on compiling revised growth data for States and Union Territories.
At the heart of the revision is the shift to full adoption of the “double deflation” method for key sectors like manufacturing and agriculture and complete elimination of single deflation method. Under this approach, the value of output and the cost of inputs are adjusted separately for price changes before calculating real growth. Put simply, GDP aims to measure how much the economy is producing in “real” terms, that is, after removing the impact of inflation. To do this, statisticians use price indices (deflators).
Under double deflation, the prices of finished goods (output) are adjusted separately. The prices of raw materials and services used to produce them (inputs) are also adjusted separately.
For example, if a factory produces shoes, bags and coats, statisticians must adjust the sales value of each product for changes in their prices. At the same time, they must separately adjust the cost of leather, rubber, glue and other materials used to make those products. Since output prices and input prices often move differently, using separate adjustments gives a more accurate picture of actual production growth.
Previously, India used a mix of single and double deflation. In the new series, single deflation has been eliminated in the concerned sectors, a move expected to make GDP estimates more robust and internationally aligned.
However, the Wholesale Price Index (WPI) will continue to be used as the main deflator until its own base year is updated.
The expansion from 180 to nearly 600 item level data indicators means statisticians will track a much wider basket of goods and services to strip out inflation effects. According to international practice, including IMF guidance, double deflation is data-intensive and requires detailed price information across industries.
Officials said the broader price base will improve reliability of real growth numbers, especially in sectors where input costs fluctuate differently from output prices.
The new GDP series will also rely more heavily on administrative and survey-based data rather than proxy estimates. Among the key changes are: Household sector estimates will now be based on actual annual surveys such as the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS), instead of interpolations between survey years.
GST data will be used more extensively to allocate private corporate sector output across states and to cross-verify annual and quarterly estimates. E-Vahan data will help estimate household spending on road transport services. Public Finance Management System (PFMS) data will be used to compile central government expenditure and distribute it across states.
In a notable inclusion, the economic contribution of hired domestic workers, such as cooks, drivers and household helpers, will now be explicitly counted in GDP estimates, reflecting their role in the services economy.
GSDP
“Once the national accounting data with new base year to be out, work will start on revision of the GSDP (Gross State Domestic Products) and accordingly they will be inform the States/UTs about the methodological changes or improvements in the way GSDP is calculated,” the official said while adding that there will not be back series for GSDP.
Pointers:
- Annual, quarterly estimates for the year 2022-23 to 2025-26 to be released on Friday.
- Back series data is expected to be released by December 2026.
- Statistics Ministry claimed the revised series is in sync with the international statistical standards.
- Quarterly GDP estimation framework strengthened through important methodological improvements, most notably the shift from the earlier Pro-Rata benchmarking method to the Proportional Denton method.
- Major methodological improvements include reduction in allocation-based methods in favour of direct estimation for some sectors/sub-sectors and reduction in reliance on fixed ratios and proxies beside others.
- GDP estimates provide crop wise production figures. Now enhanced focus being provided for growing of fruits, oilseeds, pulses, fisheries sector etc.
Here’s the Understanding the New Series of GDP – Frequently Asked Questions document
Published on February 26, 2026