Revised GDP series with 2022-23 base year shows reduction in economy size and structural changes
India's National Statistical Office (NSO) has released a revised GDP series with 2022-23 as the base year, after an 11-year gap. The new series indicates a 3-4% reduction in the absolute size of GDP compared to the 2011-12 series. It also shows changes in the production structure, with increased shares for agriculture and industry, and a decline in the services sector. The non-financial private corporate sector's share has decreased, while the household/informal sector's share has risen. This revision is seen as a welcome correction to previous overestimations, though further methodological details are awaited to fully assess its veracity.
Key Points
- The NSO released a revised GDP series with 2022-23 as the new base year, replacing the 2011-12 series.
- The new series shows a 3-4% reduction in India's absolute GDP size compared to previous estimates.
- Structural changes include increased shares for agriculture and industry, and a decreased share for the services sector.
- The share of the non-financial private corporate sector has declined, while the household or informal sector's share has increased.
- The revision is viewed as a potential correction for previously debated overestimations of GDP growth rates.
Exam Facts
- New base year for GDP series: 2022-23.
- Previous base year: 2011-12.
- Reduction in GDP size: 3-4%.
- Institution: National Statistical Office (NSO).
- International Monetary Fund (IMF) awarded India a 'C' grade for economic statistics quality.
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