Changes in the base year for GDP, CPI, and IIP: A new picture of economic data

Changes in the base year for GDP, CPI, and IIP: A new picture of economic data

Recently, the Ministry of Statistics and Program Implementation announced a major change in the base year for the country's key economic indicators—Gross Domestic Product, Consumer Price Index, and Index of Industrial Production. This move is considered significant in more accurately reflecting the current structure of the Indian economy.

The new base year for GDP and IIP will be 2022-23, while for CPI it will be 2024. The updated series is scheduled to be released on 12 February, 2026 (CPI), 27 February, 2026 (GDP), and May, 2026 (IIP). The objective of this step is to improve the accuracy, relevance and international comparability of India’s official data.The base year is the reference year on the basis of which economic indicators are measured. Over time, due to progress in technology, new industries and changing consumption patterns, economic structures change. Therefore, from time to time base year revision ensures this.

Professor Biswanath Goldar Committee

¨     MoSPI has constituted an Advisory Committee on National Accounts Statistics (ACNAS), which is chaired by Professor Biswanath Goldar (B.N. Goldar).

¨     The constituted Professor Biswanath Goldar Committee (26-member ACNS) has the main objective of revising the base year of India’s Gross Domestic Product (GDP) and National Accounts Statistics from 2011-12 to a new base year (possible 2020-21 or 2022-23). This committee is working on modernizing economic data.

Release date of new series of CPI, GDP, IIP

¨     CPI new series – 12 February, 2026

¨     GDP new series – 27 February, 2026

¨     IIP new series – May, 2026

This phased rollout ensures smooth transition into the updated statistical framework.The process of change in base year is guided by Technical Advisory Committees and Expert Groups, which include experts from academia, RBI, and central and state governments.

Change in base year of GDP series

¨     A major reform has been to change the base year for Gross Domestic Product (GDP) estimates from the year 2011-12 to 2022-23. In the decade after 2011-12, there has been a major transformation in India’s economy, in which new industries are emerging (such as renewable energy, digital services) and there have been changes in consumption patterns and investment behavior.

¨     The year 2026 revision will be the eighth base year update, before this seven revisions, in August, 1967 from 1948-49 to 1960-61 and most recently on 30 January, 2015 from 2004-05 to 2011-12, have taken place.

¨     The first national income estimate for India was compiled in 1949 by the National Income Committee (under the chairmanship of Prashant Chandra Mahalanobis).

Change in base year of Consumer Price Index (CPI)

¨     Consumer Price Index (CPI) provides a comprehensive and timely measure of inflation, which reflects the consumption pattern of different population groups. The CPI series will also be revised with the new base year of 2024.

¨     This update will change the item basket and expenditure weights using the data of Household Consumption Expenditure Survey (HCES) 2023-24 so that they can reflect the current consumption patterns in both rural and urban India.

Change in base year of Industrial Production Index (IIP)

¨ Industrial Production Index (IIP) is a key indicator which measures how industrial production is changing over time. It is a monthly indicator which shows monthly changes in the production volume of a representative basket of industrial products with reference to a fixed base year.