India is likely to have clarity on base year revision for key metrics that ascertain growth, inflation and factory output by the end of the fiscal, sources familiar with the developments informed Moneycontrol.
“The idea is to keep base years for all releases aligned to a single year,” a person aware of the developments said.
Most of the macroeconomic indicators released by the government such as the Consumer Price Index, Index of Industrial Production and Gross Domestic Product have been using 2011-12 as the base year for calculation, and this is likely to get revised soon, said sources.
India’s consumer inflation basket will have 2024 as base year, the Economic Survey 2023-24 had conveyed on July 22, adding that the government will also work towards expediting the availability of Producer Price Index, which is likely to replace Wholesale Price Index.
The government is yet to take a call whether it would choose 2023-24 or 2024-25 as a base for the GDP numbers. In the previous format, 2011-12 was the base for the GDP, while 2012 was chosen as the base for CPI calculations.
India’s economy grew 8.2 percent in 2023-24, according to government data. The latest Economic Survey has now projected 6.5–7 percent as the growth rate for the current fiscal.
A relook at India's major economic indicators has been long overdue, given that it has been more than a decade since the last revisions were announced.
The government has fast-tracked the release of surveys required for such data revisions. In February this year, it announced the results of household consumption expenditure survey 2022-23. It also announced results of the Annual Survey of Unincorporated Sector Enterprises in June. These surveys provide necessary bedrock for the update of GDP data.
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