New GDP series makes meeting fiscal targets, $4-trillion economy aim more difficult

Key Highlights

• The new series with 2022-23 as the base year for prices has led to a reduction in the GDP in nominal terms by 3-4% in 2025-26, as well as in the previous three years.
• This is because of changes in the sources of data used to compile the GDP, as well as the methods.
• “Larger impacts normally are seen when there is a substantial change in the databases.
• As databases keep improving, the changes – whether positive or negative – tend to reduce, which is what you can see over the past few revisions, even in India, that the changes have been in the region of 2-3-4%, less than that,” MoSPI Secretary Saurabh Garg said at a briefing on Friday.
• Globally, revisions have changed GDPs by a far greater magnitude.