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 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…
