Base Year for GDP, IIP and CPI Revised
Table of Contents
India’s statistical system is undergoing a major structural upgrade to reflect the realities of a rapidly transforming economy. One of the most significant steps in this reform is the revision of the base year for GDP to 2022–23, along with changes in CPI and IIP.
For competitive exam aspirants, understanding the base year for GDP is crucial because it directly impacts growth rates, inflation measurement, sectoral contribution, and policy interpretation.
What is the Base Year for GDP?
The base year for GDP is a reference year used to calculate real GDP, allowing comparisons over time by removing the impact of inflation.
It reflects:
- Economic structure
- Price levels
- Sectoral composition
Base Year for GDP Revised to 2022–23
| Indicator | Old Base Year | New Base Year |
|---|---|---|
| GDP | 2011–12 | 2022–23 |
| CPI | 2012 | 2024 |
| IIP | 2011–12 | 2022–23 |
The base year for GDP was revised after more than a decade to capture:
- Expansion of the services sector
- Growth of the digital economy
- Formalisation under GST
- New industries like renewable energy
Why was 2022–23 Chosen as the New Base Year?
The year 2022–23 is considered a “normal year” because:
- It is post-COVID, unlike 2019–20 and 2020–21
- Economic activity had stabilised
- Consumption and production patterns normalised
This makes GDP estimates more realistic and reliable.
International Best Practices & Data Sources
Rebasing allows India to align with UN Statistical Commission guidelines and global standards.
New administrative data sources used include:
- GST Network
- e-Vahan
- PFMS
- Digital transaction databases
These improve the accuracy of GDP estimates under production, income, and expenditure approaches.
CPI Base Year Revised to 2024
The Consumer Price Index (CPI) base year is revised to 2024 using data from HCES 2023–24.
- This will updates consumption basket
- Revises weights for rural & urban households
- Improves inflation measurement
IIP Base Year Revised to 2022–23
The Index of Industrial Production (IIP) tracks monthly industrial output.
Key improvements:
- Updated product basket
- Revised weights
- Better factory representation
- Alignment with GDP base year
IIP is a key input for manufacturing GVA calculation.
Timeline for Release of New Series
| Indicator | New Base Year | Release Date |
|---|---|---|
| GDP | 2022–23 | 27 Feb 2026 |
| CPI | 2024 | 12 Feb 2026 |
| IIP | 2022–23 | 28 May 2026 |
Labour Market Reforms (PLFS)
Major upgrades under Periodic Labour Force Survey (PLFS):
- Monthly national labour indicators (from Jan 2025)
- Quarterly rural & urban estimates
- Selected State-level data
Enhances real-time employment tracking.
District-Level Data: A Game Changer
From 2025, district becomes the basic statistical unit in:
- PLFS
- ASUSE
- NSS surveys
Digital & Data Transparency Reforms
New Platforms:
- GoIStats App (2025)
- e-Sankhyiki Portal (136 million records)
- Revamped Microdata Portal
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Frequently Asked Questions (FAQs)
What is the base year for GDP in India?
The current base year for GDP in India is 2022–23.
Why is the base year for GDP revised?
To reflect changes in economic structure, prices, and sectoral contribution.
Who revises the base year for GDP?
The Ministry of Statistics and Programme Implementation (MoSPI).
How often is GDP base year revised?
Usually every 10–12 years.
Is base year revision important for exams?
Yes, it is a high-probability current affairs topic for UPSC & APPSC.
Reference: PIB
