Published: 26 February 2026Economy
MoSPI Releases New GDP Series with FY23 Base Year; Double Deflation Methodology Adopted
The Ministry of Statistics and Programme Implementation released the new GDP series with base year FY23, adopting the double deflation methodology for the first time. This method separately deflates output and input to arrive at real GVA, providing a more accurate measure of sectoral productivity.
The new series integrates GST data into GDP calculations and uses the latest Annual Survey of Industries and ASUSE, PLFS, GST and other administrative data. Under the new methodology, India's GDP growth for FY25 was revised to 7.1% under the new series. The revision brings India's national accounts closer to international standards recommended by the UN System of National Accounts.
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Under the Critical Mineral Recycling Incentive Scheme approved as part of the National Critical Mineral Mission, what annual recycling capacity is targeted?
Explanation · Correct answer CThe Union Cabinet-approved Critical Mineral Recycling Incentive Scheme aims to develop at least 270 kilotonnes of annual recycling capacity. This capacity is expected to produce around 40 kilotonnes of critical minerals annually, attract about ₹8,000 crore investment, and support recycling from sources such as e-waste and lithium-ion battery scrap.
Frequently asked questions
What new methodology did MoSPI adopt in the new GDP series?
**MoSPI** released the new GDP series with **base year FY23**, adopting the **double deflation methodology** for the first time. This method **separately deflates output and input** to arrive at real Gross Value Added (GVA), providing a more accurate measure of **sectoral productivity**.
What is double deflation methodology in GDP calculation?
**Double deflation** is a method that calculates real GVA by **deflating both output and inputs separately** using their respective price indices, rather than deflating only output by a single index. This gives a more precise estimate of actual productivity and value added in each sector.
What new data sources are integrated in India's FY23 base year GDP series?
The new GDP series integrates **GST data** into GDP calculations and uses the **latest Annual Survey of Industries (ASI)** data. These improvements capture the **formalisation of the economy**, digital transactions, and the expanding services sector more accurately.
How does the new GDP base year series affect India's economic measurement?
The FY23 base year GDP series better captures India's **digital economy, gig economy, e-commerce**, and **formalised MSMEs** (post-GST). It may revise sectoral compositions and historical growth rates, and is expected to show **higher nominal GDP** due to better coverage of the modern economy.
What is the significance of GST data integration into India's new GDP series?
**GST data integration** into GDP calculations is significant because it captures **millions of formally registered businesses** that were previously undercounted. GST provides real-time transaction data for goods and services, making GDP estimates more **current, accurate, and frequent** than before.
