India’s national income accounting framework is set for a significant upgrade. On February 27, 2026, the Ministry of Statistics and Programme Implementation (MoSPI) will roll out a new base year series for Gross Domestic Product, shifting from 2011-12 to 2022-23. While base year revisions are a standard statistical practice to reflect structural changes in the economy, this update stands out for one key reason: a much deeper integration of GST data into national and state income estimates.
Why Changing the Base Year Matters
Rebasing GDP ensures that economic measurements reflect current production patterns, consumption trends, and price structures. Over a decade, India’s economy has undergone major transformations — digitization, formalization, expansion of services, and the implementation of the Goods and Services Tax (GST). Updating the base year aligns official statistics with these structural shifts, improving policy relevance and analytical accuracy.
Greater Reliance on GST Data
Under the previous 2011-12 series, GST data was used in limited ways — primarily in quarterly accounts and selected annual estimates. The new 2022-23 series significantly expands this usage.
GST registration and return filings now play a central role in estimating corporate sector activity. Instead of relying heavily on proxy indicators to measure private corporate contributions to state output, the revised framework uses actual transaction-level information. This enhances the precision of estimates for Gross Value Added (GVA) and Gross State Domestic Product (GSDP).
Additionally, GST data helps identify active private corporations more effectively. This reduces errors from non-reporting entities and improves imputation methods, leading to more reliable corporate sector estimates.
Granular Sectoral Insights
One of the most transformative aspects of the update is the use of product-level information from HSN and SAC codes in GST filings. These details feed directly into Quarterly National Accounts, enabling more granular tracking of sectoral performance. Policymakers and analysts can now observe trends with greater timeliness and depth.
Improved Measurement of NBFCs
The methodology for estimating GVA in private Non-Banking Financial Companies (NBFCs) has also been strengthened. Instead of using loan-growth proxies from a limited sample, the new series draws from comprehensive financial statements available through the Ministry of Corporate Affairs database. This shift enhances robustness and reduces estimation bias in financial sector measurement.
What This Means for India
The 2022-23 GDP series represents more than a statistical revision. It reflects India’s transition toward a more formal, data-driven economy. By leveraging GST and corporate financial databases, MoSPI is moving toward higher transparency, improved reliability, and stronger state-level economic measurement.
For policymakers, investors, and researchers, the message is clear: India’s economic statistics are becoming more granular, more comprehensive, and better aligned with the realities of a modern economy.