India To Reset GDP And CPI Base Years To Reflect Current Economy

The Ministry of Statistics and Program Implementation (MoSPI) says that India will change the base years for calculating Gross Domestic Product (GDP) and the Consumer Price Index (CPI) later this month. GDP will move to 2022–23 and CPI will move to 2024.

What Is A Base Year

According to MoSPI, a base year is the reference period against which changes in economic indicators are measured. For GDP, it represents the price and production structure used to calculate real growth. It sets the weights for the consumption basket and spending that are used to figure out CPI inflation.

The base year for India's GDP is 2011–12, and the base year for CPI inflation is 2012. MoSPI has said that these base years are no longer a good reflection of how the economy is doing now.

What Will Change In The New Series

MoSPI has said that the base year for GDP will move from 2011–12 to 2022–23. Using new survey data on household spending, CPI inflation will be based on 2024 instead of 2012. Once implemented, all future GDP growth rates and inflation prints will be reported using these revised benchmarks, according to official statements from the statistics ministry.

Why The Revision Is Being Done Now

MoSPI said the revision is aimed at improving statistical accuracy and relevance. Since the earlier base years, India’s economy has seen changes in sectoral composition, with services accounting for a larger share of output and increased use of digital platforms across industries.

There are also changes in the way people spend their money, including changes in the amount they spend on food, housing, and services. According to the ministry, using old base years may make the actual price changes and growth trends appear smaller or larger than they actually are.

Impact On Growth And Inflation Data

MoSPI said that with the new base years, CPI inflation will be based on new expenditure weights that show how households spend their money now. This could cause the headline inflation numbers to be different from the current series.

The prices and production structures from 2022 to 2023 will also be used to recalculate GDP data. MoSPI stated that historical growth rates may be revised as part of the rebasing exercise, depending on updated sectoral weights and price deflators.

The ministry clarified that such revisions reflect changes in measurement methodology rather than changes in real economic activity.

What It Means For Households And Businesses

MoSPI said the rebasing exercise will not alter actual prices, incomes or spending for households and businesses. The changes will affect how inflation and growth are officially measured and compared across time.
The updated series will be used for policy formulation, fiscal planning and economic analysis, aligning India’s statistical framework more closely with international best practices, according to the statistics ministry.