Key Reforms Proposed

• Gross Domestic Product (GDP): Updating Base year (Benchmark year for comparison) to 2022-23 from 2011-12 along with bolstering data sources. 
  • E.g., exploring GST, E-Vahan portal, and UPI data in addition to data from Office of Controller General of Accounts (CGA), MCA-21, and RBI. 
• Index of Industrial Production (IIP): Updating Base year to 2022-23 (from 2011-12). 
• Consumer Price Index (CPI):  Updating Base year to 2024 (from 2012).
  • Exploring alternative data sources, like online platforms for airfare, rail fare, OTT platforms and administrative records for petrol, diesel and LPG prices, etc. 
• Conducting Annual Survey of Service Sector Enterprises (ASSSE):  To measure the formal services sector along the lines of the Annual Survey of Industries. 
• Household Consumption Expenditure Survey (HCES): To be held every three years instead of five. 

Need for the Reforms

• Capture Changes in Economic Structure: E.g., shift in consumption pattern, sector weight and the incorporation of new sectors.
• Tapping Varied Data sources: E.g. GST returns for the manufactured products, capture both value and quantities of production. 
• Real Economic Growth: Revision in Base year captures the real economic growth after removing the effect of inflation.