New GDP series reflects better data, methods: MoSPI

New Delhi: The Ministry of Statistics and Programme Implementation (MoSPI) defended the use of double deflation in the new gross domestic product (GDP) series and said that the revisions reflect improved data sources and methodological improvements. MoSPI secretary Saurabh Garg told ET in an interview that the revised GDP estimates reflect changes in the structure of the Indian economy. Defending the new methodology, he said the 2022-23 base-year series moved towards more granular price measurement, including the use of item-level Producer Price Index (PPI), while output and intermediate consumption in manufacturing are deflated separately. "Double deflation should be seen as a methodological improvement designed to better capture real value addition, rather than as a mechanism intended to raise GDP growth," said Garg. His comments come close on the heels of questions raised by former finance secretary Subhash Garg on the latest GDP data, which pegged growth at 7.8% in the April-June quarter. The former finance secretary had argued that the April-June 2025 nominal GDP was revised down to ₹80 lakh crore from Rs 86 lakh crore to make growth in April-June 2026 "look better". Also Read | GDP numbers may look puzzling, but the new methodology measures the economy differently India introduced the new GDP series in February with 2022-23 as the base year, updating it from 2011-12. The MoSPI expects to release the GDP back series by December, following consultations with the Advisory Committee. The comprehensive sources and methods document for the new series is planned for release this month. The MoSPI secretary said that the 2022-23 base revision brought in newer data sources, better coverage, more granular price information, double deflation for manufacturing, improved measurement of the household sector and stronger reconciliation through supply and use tables. The household and unincorporated sector is now measured using more regular direct information from Annual Survey of Unincorporated Sector Enterprises and Periodic Labour Force Survey, rather than relying predominantly on extrapolation from an older benchmark. Goods and services tax data is used for cross-validation, while Public Financial Management System and e-Vahan have also been incorporated into the estimates. "The measurement is continuously improving as new surveys and administrative datasets become available," he said, adding that the next major framework change will be the transition towards System of National Accounts (SNA) 2025, for which a sub-committee under the Advisory Committee on National Accounts Statistics sub-committee has already been constituted. Countries are expected to adopt SNA 2025 from 2029-30. States are also expected to release their new GDP series by the end of this year, Garg said, adding that some states are already ahead in adopting the new base year. The MoSPI will focus on improving data sources, high-frequency indicators, price statistics, coverage, classifications and estimation techniques in the future. The proposed Index of Services Production is one such initiative, Garg said.