A fresh start: Base revision will better inform policy decisions

The expected revision will not only change the base year but also include new data sources, which should help make these indices more robust

Several crucial economic indicators that inform policy decisions are set for a comprehensive overhaul. As reported in this newspaper and elsewhere, the Union government’s statistics department is working on new series for the consumer price index (CPI), index of industrial production (IIP), and gross domestic product (GDP), which are likely to be released next year. For a rapidly developing economy like India, it is extremely important that key indices are regularly revised and adjusted. Revision in recent years was delayed partly because of the pandemic and the long gap between household consumption expenditure surveys. As a report in this newspaper