India Revamps Economic Measurement for Real-Time Accuracy

India plans to enhance its economic measurement with a new system leveraging real-time tax data. Set for release in 2026, the revised GDP framework will include back-series data and improved methods to assess the informal sector. Workshops and new indices aim to modernize economic insights.

In a bid to refine economic assessments, India announced plans Monday to adopt a revamped system that utilizes real-time tax filing data to improve the precision of measuring national output.

Utilizing information from the Goods and Services Tax Network (GSTN), states will soon be able to calculate their Gross State Domestic Product (GSDP) more accurately, according to Saurabh Garg, Secretary of the Ministry of Statistics and Programme Implementation. These changes are set to take effect with the new GDP framework release on February 27, 2026.

Garg highlighted the ministry's initiatives, including workshops aimed at enhancing states' GSDP estimation skills and developing specialized indices to capture data from the digital economy and tourism sectors. Additionally, the ministry aims to launch an Index of Service Production next year to more comprehensively measure the services sector, crucial to understanding India's broader economic landscape.

(With inputs from agencies.)