Work on the GDP rebasing was originally to begin around 2019-20, but was delayed by Covid-19 disruptions that distorted consumption, labour and migration patterns. Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (Mospi), said undertaking the revision amid such volatility risked embedding temporary distortions into the indices calculated, so they waited for these impacts to settle down.
A key pillar of the new series is the improved measurement of the household and informal sectors that account for a significant share of output and employment. Instead of proxy indicators or inter-survey growth, the new series adopts annual, survey-based level estimates, using data from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS). “GST data will also be used to cross-check the estimates obtained from other data sources,” the statistics ministry said. The other additions include e-Vahan for transport consumption, Public Finance Management System for government spends, and specialised studies on fodder, fisheries, dairy, and transport.
The contribution of hired domestic workers like cooks, drivers, persons cleaning households, are also being included in GDP estimation under the head “activities of households as employers of domestic personnel”. The new framework also expands the coverage of gig and platform based work, with dedicated activity codes capturing ride hailing and delivery operations.
For multi-activity private corporations, the new series uses the MGT-7 and MGT-7A forms mandated by the Ministry of Corporate Affairs (MCA) to look at detailed activity-wise value added estimates of the business. Till now, the total value added of such enterprises was linked to the major activity based on their corporate identification number (CIN) classification. While the new series would still use WPI deflators with a 2011-12 base year, the usage has changed as both WPI and CPI deflators will be used at a more granular level. Separate item-level WPI for output and intermediate consumption are used in the manufacturing sector. There are plans to incorporate the Producer Price Index (PPI) in the near future. Other tweaks include the adoption of Supply and Use Tables (SUT) to minimise discrepancies between GDP from production and expenditure approaches, enhancing internal consistency. SUT shows what industries produce and how products are used by industries or final consumers.
The annual and quarterly GDP estimates would now be aligned more closely in terms of sectoral classification, deflation strategies, and estimation practices. “This harmonisation ensures greater consistency between quarterly and annual GDP and GVA estimates,” the ministry noted. The annual and quarterly estimates for the year 2022-23 to 2025-26 under the new series come out today, while the back series data is to be released by December.
 "GDP Growth")
