26-member Advisory Committee on National Accounts Statistics (NAS) under chairmanship of Biswanath Goldar has been formed to identify new data sources & refine methodology for compiling NAS.
- Central Statistics Office brings out NAS annually which includes GDP estimates from multiple approaches.
What is Base Year?
- Base year is a benchmark used for GDP calculation. It allows for comparison of economic growth over a period of time by eliminating the effects of inflation.
Need of Base Year Revision
- Incorporating New Data Sources: Availability of high-frequency quality data has improved since 2011-12 due to digitization & various sectoral developments.
- Its incorporation will improve precision of GDP calculation.
- Accommodating Structural Changes: New base year will account for shifts in consumption patterns, sectoral contributions, & inclusion of emerging sectors seen in past decade.
- Previous base year, 2011-12, established in January 2015 is considered outdated for current economic realities.
- Others: Accommodation of Post-Pandemic economic dynamics & adhering to International standards for global comparability.
Implications
- It may lead to revised growth estimates;
- A more accurate representation of India's economic activity aid policy formulation & improve investor confidence etc.