New Delhi: The methodology for measuring India's economic growth is set for an overhaul, with the statistics ministry proposing the use of granular data, a new benchmark technique and sector-specific changes to quarterly gross domestic product (GDP) estimates.
The changes will also extend to sub-national accounts, which measure gross state domestic product (GSDP).
According to a discussion paper released by the ministry on Friday, some new data sources include GST data (aggregated) cross classified by HSN/ SAC and constitution of business, e-Vahan data (vehicle registrations), and information on consumption of natural gas, etc. "These new data sources will improve the estimates for those sectors for which no high frequency indicators were available in the existing series, as well as enhance the granularity in the estimation of each institutional sector," it mentioned.
The revisions will be implemented alongside annual national accounts rebasing exercise. The ministry of statistics and programme implementation (MoSPI) is in the process to revise the GDP base year to 2022-23 from 2011-12, with the new series scheduled for release on February 27.
Under the proposed changes, key sectors such as manufacturing, construction, trade, transport, financial services and agriculture will see revisions in indicators used, extrapolation method and benchmarking techniques.
Food subsidies, earlier part of product subsidies, will be treated as transfer in kind in the revised base year. The ministry has also proposed replacing the existing pro-rata benchmarking method, which has been shown to produce discontinuities in the series, with the Proportional Denton Method. It will preserve the movement of the indicators while maintaining consistency with the annual national accounts.
The changes will also extend to sub-national accounts, which measure gross state domestic product (GSDP).
According to a discussion paper released by the ministry on Friday, some new data sources include GST data (aggregated) cross classified by HSN/ SAC and constitution of business, e-Vahan data (vehicle registrations), and information on consumption of natural gas, etc. "These new data sources will improve the estimates for those sectors for which no high frequency indicators were available in the existing series, as well as enhance the granularity in the estimation of each institutional sector," it mentioned.
The revisions will be implemented alongside annual national accounts rebasing exercise. The ministry of statistics and programme implementation (MoSPI) is in the process to revise the GDP base year to 2022-23 from 2011-12, with the new series scheduled for release on February 27.
Under the proposed changes, key sectors such as manufacturing, construction, trade, transport, financial services and agriculture will see revisions in indicators used, extrapolation method and benchmarking techniques.
Food subsidies, earlier part of product subsidies, will be treated as transfer in kind in the revised base year. The ministry has also proposed replacing the existing pro-rata benchmarking method, which has been shown to produce discontinuities in the series, with the Proportional Denton Method. It will preserve the movement of the indicators while maintaining consistency with the annual national accounts.
