{"id":889,"date":"2026-03-06T06:28:37","date_gmt":"2026-03-06T06:28:37","guid":{"rendered":"https:\/\/materials.simplycurrentaffairs.com\/?p=889"},"modified":"2026-03-12T10:12:18","modified_gmt":"2026-03-12T10:12:18","slug":"india-modernises-core-economic-data-systems","status":"publish","type":"post","link":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/2026\/03\/06\/india-modernises-core-economic-data-systems\/","title":{"rendered":"India Modernises Core Economic Data Systems"},"content":{"rendered":"\n

India Modernises Core Economic Data Systems<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h2>\n\n\n\n

What\u2019s in the news?<\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
    \n
  • The Ministry of Statistics and Programme Implementation (MoSPI)<\/strong> is undertaking a major overhaul of its national statistical system<\/strong> to ensure that official economic data keeps pace with the country\u2019s rapidly changing economic structure.<\/li>\n<\/ul>\n\n\n\n

    Major Changes<\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
      \n
    • A central feature of this effort is the revision of the base year for Gross Domestic Product (GDP) from 2011\u201312 to 2022\u201323.<\/strong><\/li>\n\n\n\n
    • Rebasing<\/strong> allows national income estimates to better capture current production patterns, consumption behaviour and price structures.<\/strong> The year 2022\u201323 was selected as it represents a stable, post-pandemic period.<\/strong><\/li>\n<\/ul>\n\n\n\n
      \n
        \n
      • The base year<\/strong> functions as the standard reference point<\/strong>, which enables economists to measure real economic growth by eliminating inflationary effects to determine actual output changes.<\/li>\n\n\n\n
      • The base year is updated from time to time<\/strong> to reflect the changes that have happened in the economy over the years. This helps make economic data more accurate.<\/strong><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
          \n
        • While the overall framework of GDP estimation remains unchanged, new data sources<\/strong> \u2014 including GST filings, e-Vahan vehicle registration data and the Public Financial Management System (PFMS)<\/strong> \u2014 are being integrated to improve accuracy and detail.<\/strong><\/li>\n<\/ul>\n\n\n\n
          \n

          E-Vahan Portal:<\/strong><\/strong><\/strong><\/h3>\n\n\n\n
            \n
          • The E-Vahan Portal is an online platform<\/strong> that provides a range of services related to vehicle registration, driving licenses, and permits.<\/strong><\/li>\n\n\n\n
          • The portal was launched in 2016 by the Ministry of Road Transport and Highways (MoRTH)<\/strong> and the National Informatics Centre (NIC).<\/strong><\/li>\n<\/ul>\n\n\n\n

            Public Financial Management System:<\/strong><\/strong><\/strong><\/h3>\n\n\n\n
              \n
            • PFMS is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance.<\/strong><\/li>\n\n\n\n
            • PFMS started during 2009<\/strong> with the objective of tracking funds released under all Plan schemes<\/strong> of Government of India, and real time reporting of expenditure at all levels of Programme implementation.<\/strong><\/li>\n\n\n\n
            • Subsequently, the scope was enlarged to cover direct payment to beneficiaries under all Schemes.<\/strong><\/li>\n\n\n\n
            • The primary function of PFMS today is to facilitate sound Public Financial Management System for Government of India<\/strong> by establishing an efficient fund flow system as well as a payment cum accounting network.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
                \n
              • Similarly, the base year for the Consumer Price Index (CPI)<\/strong> is being updated to 2024<\/strong>.<\/li>\n\n\n\n
              • The Index of Industrial Production (IIP)<\/strong>, which tracks changes in industrial output<\/strong>, is also being rebased to 2022\u201323.<\/strong>\n
                  \n
                • The updated series will incorporate revised product baskets, new weights and improved coverage of industries<\/strong> to reflect technological and structural changes.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
                  \"\"<\/figure>\n\n\n\n
                    \n
                  • Earlier, the household sector<\/strong> was estimated using growth rates between surveys or proxy indicators<\/strong>. In the new series, actual level estimates<\/strong> are being prepared using regular annual surveys<\/strong> such as Annual Survey of Unincorporated Sector Enterprise (ASUSE)<\/strong> and Periodic Labour Force Survey (PLFS).<\/strong><\/li>\n<\/ul>\n\n\n\n

                    Double<\/strong> Deflation<\/strong> Methodology<\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
                      \n
                    • The new GDP series also introduces the \u201cdouble deflation\u201d method<\/strong> for key sectors like manufacturing and agriculture and complete elimination of single deflation method.<\/strong><\/li>\n\n\n\n
                    • Under this approach, the value of output and the cost of inputs are adjusted separately for price changes before calculating real growth.<\/strong>\n
                        \n
                      • GDP<\/strong> aims to measure how much the economy is producing in \u201creal\u201d terms<\/strong>, that is, after removing the impact of inflation<\/strong>. To do this, statisticians use price indices (deflators).<\/strong><\/li>\n\n\n\n
                      • Under the earlier approach<\/strong>, GDP estimates often relied on single deflation<\/strong>, where output was adjusted using a single price index<\/strong>. The double deflation method will correct this<\/strong> by separately adjusting output and input prices to make GDP estimates more robust<\/strong> and internationally aligned.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

                        International<\/strong> Statistical<\/strong> Standards<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
                          \n
                        • India prepares its GDP estimates according to the 2008 System of National of Accounts (SNA 2008)<\/strong>, which is a globally accepted standard.<\/li>\n\n\n\n
                        • Besides, India is also a subscriber of IMF\u2019s Special Data Dissemination Standard (SDDS)<\/strong>, which indicates that the country meets all the tests of good statistical citizenship.<\/strong><\/li>\n\n\n\n
                        • The revised series is in sync with the international statistical standards.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                          India Modernises Core Economic Data Systems What\u2019s in the news? Major Changes E-Vahan Portal: Public Financial Management System: Double Deflation Methodology International Statistical Standards<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-889","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/comments?post=889"}],"version-history":[{"count":3,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/889\/revisions"}],"predecessor-version":[{"id":927,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/889\/revisions\/927"}],"wp:attachment":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/media?parent=889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/categories?post=889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/tags?post=889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}