New GDP Series by the National Statistics Office
The National Statistics Office has introduced a new GDP series to enhance the country's data architecture. This advancement addresses past criticisms and improves the representation of the Indian economy's dynamic structure.
Key Enhancements in the GDP Series
- Incorporates enriched data from both formal and informal sectors.
- Revises estimation methodologies for more accuracy.
- Includes GST figures for better quarterly data estimation.
- Captures the informal sector through annual surveys of unincorporated enterprises.
- Addresses double deflation issues in agriculture and manufacturing.
- Updates key ratios with recent studies.
Recent Initiatives Complementing the GDP Series
- New inflation series.
- Surveys on household consumption.
- More frequent labor market surveys.
Current Economic Projections
- The economy is expected to grow at 7.6% in 2025-26, slightly above the previous estimate.
- Growth in the third quarter is projected at a strong 7.8%.
- The chief economic adviser has revised next year's growth projection to 7-7.4%.
However, the nominal size of the economy for 2024-25 is estimated to be 3.8% lower, impacting fiscal deficit and debt reduction targets.
Data Availability and Future Steps
- The new data series is available starting from 2022-23.
- The release of the back series for prior years is planned by the end of this year.
This task will be challenging due to the non-availability of certain new data sources, requiring a careful approach.
