MoSPI Releases Key Report on Constant Price Methodology Ahead of New GDP Base Year Series

MoSPI is revising the base year of National Accounts to FY 2022–23 under the guidance of the Advisory Committee on National Account Statistics (ACNAS), chaired by Prof. B.N. Goldar.

The Ministry of Statistics and Programme Implementation (MoSPI) has released the report of the Sub-Committee for Constant Price Estimates, a major step in the ongoing revision of India’s National Accounts base year to FY 2022–23.

The new National Accounts Statistics series (Base: 2022–23) is scheduled for official release on 27 February 2026, and the publication of sub-committee reports is intended to apprise users about key conceptual and methodological improvements being introduced.

Advisory Committee Steering Base Year Revision

MoSPI is revising the base year of National Accounts to FY 2022–23 under the guidance of the Advisory Committee on National Account Statistics (ACNAS), chaired by Prof. B.N. Goldar.

To support the revision process, ACNAS constituted five specialised sub-committees covering:

• Incorporation of new data sources, rates and ratios

• Methodological improvements

• Constant price estimates

• Regional accounts

• SNA 2025 update

The report on Methodological Improvements was released earlier on 18 February 2026, and MoSPI has now released the report focusing specifically on constant price (real) GDP estimation.

Strengthening Real GDP Measurement

The Sub-Committee report outlines the methodology for compiling constant price estimates for both:

• Production-side aggregates

• Expenditure-side aggregates

Constant price estimates are critical for measuring “real” economic growth by removing the impact of inflation.

The report encapsulates key deliberations and recommendations aimed at improving the robustness, accuracy and consistency of India’s GDP estimates.

Major Shift Away From Single Deflator Approach

A key highlight of the new GDP series is a calibrated move away from reliance on a single broad deflator toward a more conceptually robust framework.

The revised approach includes:

1. Transition to Double Deflation and Volume Extrapolation

Double deflation is being adopted for several industries, particularly within the manufacturing sector.

Under this method:

• Output is deflated using relevant price indices

• Intermediate consumption is separately deflated

• Value Added at constant prices is then derived more accurately

This strengthens the measurement of Gross Value Added (GVA).

Where double deflation is not feasible due to data constraints, MoSPI will apply:

• Volume extrapolation

• Single extrapolation using reliable indicators

2. Use of Specific and Disaggregated Deflators

The new series will rely on more granular price indices rather than broad aggregates.

For instance:

• Unit Value Indices (UVI) at commodity-group levelwill be used instead of aggregate-level indices for constant price estimates of exports and imports.

This improves precision in deflating trade components.

3. Updated Deflator Series

MoSPI will incorporate updated price index series, including:

• CPI (Base = 2024)

• UVI (Base = 2022–23)

• Updated WPI (Base = 2022–23) or PPI, when available

These updates ensure that deflators reflect the latest consumption and production structures.

Improved Consistency Between Annual and Quarterly Accounts

The revised constant price framework is expected to enhance alignment between:

• Annual National Accounts (ANA)

• Quarterly National Accounts (QNA)

by ensuring consistency in deflators and volume indicators across both datasets.

Report Available Publicly

MoSPI has made the report available on its official website, as part of its commitment to transparency and user awareness during the base year transition.

The report can be accessed at: www.mospi.gov.in

Toward More Robust National Accounts

With the upcoming release of the new GDP series (Base: 2022–23), MoSPI’s methodological enhancements — including double deflation, granular price indices and updated deflators — mark a significant step toward producing more accurate and internationally aligned measures of India’s real economic growth.