India is updating its GDP calculation method for the 1st time
On February 27, India will roll out a new way of measuring its real GDP.
They're switching the base year from 2011-12 to 2022-23 and recalculating the last four years, using way more data points—think 500+ items instead of just 180.
Double deflation method for sharper accuracy
This update isn't just about new math. The government is bringing in a "double deflation" method for sharper accuracy, especially in manufacturing.
They'll also tap into fresh data sources like GST filings and vehicle registrations to better capture what's really happening in the informal economy and digital services.
New numbers will line up with updated inflation and industry indexes
The new numbers will line up with updated inflation and industry indexes, making everything more current.
Ministry official Saurabh Garg says the changes will "improve the accuracy" and "enhance data precision, especially in the manufacturing sector."
India's old GDP calculations got a 'C' grade from IMF
India's old GDP calculations got a "C" grade from the IMF last year because they were outdated.
This revamp aims to fix that, so analysts and investors receive clearer signals about India's growth.