India Revises Economic Base Year to Better Reflect Structural Shifts

The Indian government is set to revise the base years for significant economic metrics, including the Gross Domestic Product (GDP) and the Index of Industrial Production (IIP), to 2022-23. Additionally, the Consumer Price Index (CPI) base year will shift to 2024, as revealed to Parliament on Wednesday.

According to the Ministry of Statistics and Programme Implementation, these changes aim to enhance accuracy in capturing economic shifts through improved methodologies and the integration of modern data sources. The CPI's new index will utilize item listings and weights from the 2023-24 Household Consumption Expenditure Survey, reflecting contemporary consumer behavior.

The Ministry has also initiated a Forward-Looking Survey on private corporate sector capital expenditure (CAPEX) intentions, spanning November 2024 to January 2025, and released its findings. Furthermore, a Pilot Study on the Annual Survey of Services Sector Enterprises (ASSSE) is underway, while the timeline for the 8th Economic Census is pending, according to official statements.

(With inputs from agencies.)