Explainer: Why India just changed its GDP base year
India just refreshed how it measures its economy—switching the GDP base year to 2022-23 (goodbye, 2011-12!).
The goal? Capture today's realities like the digital economy and administrative digital datasets (e.g., GST, PFMS, e-Vahan), gig work, and new business trends so the numbers actually reflect modern life.
What's new in the update?
The update brings in data from GST filings, e-Vahan for transport spending, government finance systems, and surveys covering everyone from gig workers to domestic help.
For more accuracy, sectors like manufacturing and agriculture now use double deflation (think: adjusting for real price changes), and companies with multiple businesses are split by turnover.
What does this mean for you?
With sharper methods—including a new way of tracking quarterly growth—GDP stats should be less jumpy and more reliable.
This means better info for jobs, policies, or businesses and investors.
Plus, back-calculated data will be out by December if you're into economic throwbacks.