New Delhi, Sep 22: India’s system for measuring economic activity is undergoing a major update, with the Ministry of Statistics and Programme Implementation (MoSPI) releasing a detailed framework explaining how the country’s new National Accounts Statistics will be compiled.
The updated framework comes after India introduced the 2022-23 base year for its national accounts series in February 2026. The estimates were subsequently updated on August 31 following the release of revised data for the Producer Price Index (PPI) and Index of Industrial Production (IIP).
At the heart of the new framework is a wider use of company filings, tax and administrative records, household surveys and other detailed datasets. The objective is to capture economic activity more accurately as businesses, consumers and the wider economy continue to evolve.
More corporate data to strengthen economic estimates
The revised methodology expands the use of corporate filings, Limited Liability Partnership (LLP) records and detailed company-level information to measure activity in the Non-Financial Private Corporate sector.
The increased use of business data is expected to provide a more detailed view of how companies contribute to different industries. It will also help improve industry classification and the measurement of output from businesses operating across multiple segments.
The financial sector has also been brought under wider data coverage as part of the revised framework.
For the government sector, MoSPI has expanded institutional coverage and made changes to the treatment of pension payments. The framework also takes into account the value of housing facilities provided to employees, giving a broader picture of government-related economic activity.
Household businesses and workers get greater visibility
The household sector has received particular attention under the revised methodology.
MoSPI has opted for direct estimates using data from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS) after examining various alternative approaches.
This is significant because India’s economic activity is not limited to large companies. Millions of people earn their livelihoods through small businesses, self-employment and unincorporated enterprises. Greater use of survey-based information can help these activities receive more systematic representation in national accounts.
Quarterly GDP calculation gets a new approach
The changes also extend to the way quarterly GDP is calculated.
For Private Final Consumption Expenditure (PFCE), MoSPI has adopted the United Nations’ COICOP 2018 classification, supported by more detailed consumption information and administrative data.
The method used to align quarterly estimates with annual figures has also been changed. MoSPI has adopted the Proportional Denton approach in place of the earlier benchmarking method.
The framework further increases the use of GST and other administrative data, helping bring more timely information into the measurement process.
Methods updated across key sectors
Several major sectors, including agriculture, construction, livestock, forestry and services, have also received methodological updates.
These changes are designed to improve consistency across national accounts and make estimates more responsive to changes in economic activity and the availability of new data.
In practical terms, the exercise is aimed at ensuring that India’s economic statistics keep pace with an economy where formal businesses, digital transactions, tax records and large-scale surveys are generating increasingly detailed information.
Expert panel guided the new framework
The revised methodology was developed through deliberations of the Advisory Committee on National Accounts Statistics (ACNAS), constituted by MoSPI on June 27, 2024, under the chairmanship of Professor B.N. Goldar.
The new publication brings together recommendations from the committee’s sub-groups and explains the statistical methods used to compile key indicators such as GDP, national income, private consumption, gross fixed capital formation and savings.
It also provides guidelines for preparing Supply Use Tables and regional accounts.
Greater clarity on how GDP is measured
For policymakers, economists, researchers and businesses, the publication provides greater transparency on the data and methods behind some of India’s most closely watched economic indicators.
MoSPI said the framework is intended to serve as a reference for users of national accounts statistics and provide a clearer understanding of how India’s economic performance is measured.
The ministry also clarified that the comparison tables showing Gross Value Added (GVA) for 2022-23 under the earlier 2011-12 series and the new 2022-23 series use information already available in the public domain. No new data has been introduced in those comparison tables.