Mospi sets up 26-member committee to decide new base year for GDP

The Advisory Committee on National Accounts Statistics to review data sources, align GDP with inflation and industrial indices

The Ministry of Statistics and Programme Implementation (Mospi) has set up a 26-member Advisory Committee on National Accounts Statistics (ACNAS) to decide the base year for gross domestic product (GDP) data. 

Biswanath Goldar, former professor of the Institute of Economic Growth, has been appointed as its chairman.

Other members of the committee include GC Manna, former director general, central statistics office (CSO), professor Mausami Das, Delhi School of Economics, and Chetan Ghate, director, Institute of Economic Growth. 

The committee will also have representation from the Reserve Bank of India (RBI), NITI Aayog, agricultural ministry, GST network, commerce and industry and Department for Promotion of Industry and Internal Trade (DPIIT).

Besides, the panel is also slated to take a call on the alignment of GDP with other indices like wholesale price index (WPI), which is used for wholesale inflation, consumer price index (CPI), used to determine consumer inflation and index of industrial production (IIP) used for calculation of industrial growth.

According to the gazette notification by the ministry, the terms of reference of the committee include reviewing the existing databases and advise on inclusion of new data sources for improving the estimates of national accounts.

The committee will also advise on the compilation and presentation of national accounts. 

“It will advise on the methodology for compilation and presentation of national accounts statistics for purposes of economic analysis and policy, including methodology for seasonal adjustment of quarterly national accounts and promotion of research in the field of national accounts statistics,” it noted. 

The government, at present, does not present seasonally-adjusted accounts.

The committee will have a tenure of five years or till the completion of next base year, whichever is later.

“For operational feasibility, the committee may constitute sub committees on different aspects with a maximum tenure of two years,” it said. 

Business Standard, on June 19, had reported that the government will take a call on base year revision by year end.

The consumer price index base is likely to be 2024, as the government is conducting a market survey to identify shops and commodities for inclusion in the consumer basket. 

The government is working to align the base year of all data releases.

It has already released various surveys like the Household Consumption Expenditure Survey (HCES), Annual Survey of Unincorporated Enterprises (ASUSE) and Annual Survey of Industries (ASI).