Government Releases Standardized Framework for Calculating State Gross Domestic Product with New Base Year of 2022-2023

National Statistics Ministry Introduces Uniform Guideline for Measuring State GDPs

The Ministry of Statistics and Programme Implementation (MoSPI) has issued a uniform guideline for measuring states' gross domestic products (GSDP) with 2022-23 as the base year. This move aims to ensure a standardized framework and comparability of performance across all states. The new guideline is a result of the national accounts' base year being changed to 2022-23 to capture the current structure of the economy more accurately.

According to the ministry, the adoption of the new base year will provide a standardized framework aimed at ensuring consistency, reliability, and comparability of state-level estimates. The Gross State Domestic Product (GSDP) is extensively used by various stakeholders, including the Ministry of Finance, Finance Commission, Comptroller and Auditor General (CAG), and others, for fiscal devolution, policy formulation, resource allocation, budgeting, performance assessment, and inter-state comparisons.

34 States/UTs Currently Compiling GSDP Estimates

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At present, 34 states/Union Territories are compiling GSDP estimates with the base year 2011-12, except for Lakshadweep and Dadra & Nagar Haveli and Daman & Diu (DNH&DD). The new series with a base year of 2022-23 is expected to onboard all states/UTs, including Lakshadweep and DNH&DD, ensuring complete national coverage and uniformity in the compilation of regional accounts.

Comparison of Base Years

The adoption of the new base year is expected to improve the accuracy, consistency, and comparability of state-level estimates, ultimately benefiting the regional economy.

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