States Required to Adopt 2022-23 as New Base Year for GSDP by FY27
States told to shift to new base year for GSDP by end of FY27
The Economic TimesImage: The Economic Times
The Ministry of Statistics and Programme Implementation (MoSPI) has mandated that all Indian states transition to 2022-23 as the new base year for calculating Gross State Domestic Product (GSDP) by the end of fiscal year 2027. This change aims to enhance the accuracy and comparability of regional economic data following the national GDP base year revision.
- 01States must adopt 2022-23 as the new GSDP base year by FY27.
- 02This change aligns state estimates with the updated national accounts framework.
- 0334 states and union territories currently use 2011-12 as the base year.
- 04The MoSPI has provided guidelines for the transition to the new base year.
- 05No mandate exists for states to revise the base year for the Index of Industrial Production.
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The Ministry of Statistics and Programme Implementation (MoSPI) has instructed all Indian states to adopt 2022-23 as the new base year for Gross State Domestic Product (GSDP) calculations by the end of fiscal year 2027. This directive follows the earlier revision of the national GDP series, which shifted its base year from 2011-12 to 2022-23 in February. The aim is to improve the accuracy and comparability of regional economic data across India. Currently, 34 states and union territories compile GSDP using the old base year, with exceptions for Lakshadweep and Dadra & Nagar Haveli and Daman & Diu. The MoSPI has issued guidelines emphasizing the use of administrative records and sectoral databases to enhance the reliability of regional statistics. While some states are progressing faster in this transition, all must comply by the set deadline. Additionally, there is no requirement for states to revise the base year for the Index of Industrial Production (IIP), although the Centre is open to assisting those who wish to make changes.
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This transition will provide more accurate economic data for state governments, which can lead to better policy-making and resource allocation.
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