India's new GDP series: GST, corporate data drive new methodology
India's revamped GDP calculation incorporates extensive corporate filings and GST data, as revealed by the statistics ministry. This update emphasizes the integration of company-level information for a more precise estimation of private corporate sector activities. Furthermore, an innovative methodology leverages corporate filings and LLP records to enhance industry classification, while surveys…
New Delhi: India's new GDP series now relies heavily on corporate data, GST records, and labor surveys, according to the country's statistics ministry. This change is detailed in a report titled 'Sources and Methods for Compilation of National Accounts Statistics', released recently. The methodology report, announced on Monday, explains the key shift to using company-level data to gauge non-financial private corporate sector activity.
India launched this new GDP series back in February, with the base year now set to 2022-23 instead of the previous 2011-12. The methodology document blends corporate filings and limited liability partnership (LLP) records to better classify industries, assess economic activity, and allocate output among companies operating in various segments. This consolidation of statistical recommendations aligns with the Ministry of Statistics and Programme Implementation's (MoSPI) statement.
The report also addresses concerns raised by former finance secretary Subhash Garg regarding the latest GDP estimates. Garg pointed out that the April-June 2025 nominal GDP was revised downwards from Rs 86 lakh crore to Rs 80 lakh crore, with the aim of portraying a more favorable growth rate in April-June 2026. The methodology document clarifies that revisions occur as additional and more comprehensive data become accessible, aiming to enhance accuracy and consistency.
These revisions adhere to international standards, such as the System of National Accounts (SNA) 2008 and the International Monetary Fund's Quarterly National Accounts Manual.
Additionally, the framework updates the estimation of the household and unincorporated sector. After analyzing various approaches, the ministry opted for direct estimation using the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS).
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