India's GDP series revamp to spotlight digital economy, gig sector
What's the story
India is set to launch a new series of Gross Domestic Product (GDP) calculations next year, with the base year revised from 2011-12 to 2022-23. The move is aimed at better capturing the country's rapidly growing digital economy. The updated series will include more detailed data on services and unincorporated enterprises, reflecting India's economic transformation in greater detail.
Growth narrative
Digital economy's impact on GDP
The digital economy has grown exponentially since the last series was introduced. E-commerce platforms, app-based aggregators, and gig work have become integral to India's growth story. These sectors have created millions of jobs and changed consumer behavior. Officials told The Times of India that data from these platforms could also be used as proxy indicators for measuring parts of the unorganized sector, which is usually hard to quantify.
Sectoral changes
Logistics and GST's role in economic measurement
The logistics sector has also evolved from simple rail and truck movement to a more integrated network with air cargo and intra-city deliveries. The introduction of the Goods and Services Tax (GST) has improved transaction-level data significantly. E-way bills used for tracking goods movement across states are now key inputs in estimating economic activity, further enhancing the accuracy of GDP calculations.
Payment surge
UPI and digital payments shaping consumption trends
The rise of digital payments through the Unified Payments Interface (UPI) is giving statisticians a clearer picture of consumption trends. This is particularly useful for sectors that were previously hard to measure through conventional surveys. The Ministry of Statistics and Programme Implementation (MoSPI) has also strengthened its Annual Survey of Unincorporated Sector Enterprises, which measures output and employment in non-agricultural units.
Comprehensive picture
New GDP series on track for late February release
The new GDP series, expected to be released in late February with the second advance estimates, will provide a more current and comprehensive view of India's economy. It will take into account the growing importance of smartphones, apps, and digital transactions in economic activity. An official told TOI said, "We have a lot more data on the production and consumption side which will help provide a better assessment of the economy."