MoSPI Revises National Accounts Base Year to 2022–23
- Context: The Ministry of Statistics and Programme Implementation (MoSPI) has updated the base year of the National Accounts to 2022–23.
- This revision aims to more accurately capture the current structure of the economy by incorporating modern data sources and improved estimation practices with evolving international standards.
- The change also aligns India’s accounting practices with evolving international standards.
Adoption by States and UTs
- All States and Union Territories are required to adopt the new base year for compiling Gross State Domestic Product (GSDP).
- The revision seeks to improve accuracy, consistency and comparability of regional economic data.
Key Priorities in GSDP Compilation
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- Expanding data integration through administrative records, sectoral databases and surveys.
- Refining estimation techniques to better capture emerging service sectors and unincorporated enterprises.
- Ensuring consistency between national and state-level economic estimates.
- Standardising methodologies across States and UTs for transparency and comparability.
Importance of GSDP
- GSDP is the main indicator for measuring the economic performance of States.
- It helps in analysing sectoral growth, industrial output and regional development.
- GSDP is widely used for fiscal planning, taxation, budgeting and inter-state comparisons.
Role in Fiscal Federalism
- GSDP plays an important role in India’s fiscal federal structure.
- Finance Commission uses GSDP data to recommend distribution of Central taxes among States.
- Indicators such as per capita GSDP and GSDP distance from top-performing States are used to ensure balanced regional development and fiscal equity.
Borrowing Limits of States
- Department of Expenditure under the Ministry of Finance uses GSDP estimates to determine States’ borrowing limits under the fiscal responsibility framework.
- Borrowing ceilings are generally fixed as a percentage of GSDP.
Present Status
- Currently, 34 States and UTs compile GSDP estimates using the 2011–12 base year.
- Lakshadweep and Dadra and Nagar Haveli and Daman and Diu are yet to be fully integrated into the process.
Uniform Guidelines
- MoSPI released draft guidelines for compilation of Gross State Value Added (GSVA) on 7 April 2026 for stakeholder consultation.
- Based on feedback received, the Uniform Guideline for GSVA compilation with base year 2022–23 has been finalised.
- The guideline aims to ensure reliability, uniformity and comparability of State-level economic estimates across India.
