{"id":44954,"date":"2025-06-09T20:40:18","date_gmt":"2025-06-09T15:10:18","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=44954"},"modified":"2025-06-10T16:55:36","modified_gmt":"2025-06-10T11:25:36","slug":"new-base-year-gdp-cpi-iip-2026","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/09-06-2025\/new-base-year-gdp-cpi-iip-2026","title":{"rendered":"New Base Year for GDP, CPI, IIP from Early 2026"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As per the Ministry of Statistics and Programme Implementation (MoSPI), <strong>Gross Domestic Product (GDP), Index of Industrial Production (IIP) and Consumer Price Index (CPI) will see a new base from next year onwards.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2024, MoSPI has set up a <strong>26-member Advisory Committee on National Accounts Statistics<\/strong> to decide the base year for GDP data.\n<ul class=\"wp-block-list\">\n<li><strong>Biswanath Goldar<\/strong> has been appointed as its chairman.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>For GDP,<\/strong> the new series is scheduled to be released <strong>on February 27, 2026 with financial year 2022-23 as base year.&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>For IIP,<\/strong> 2022 -23 has been tentatively identified as the revised base.<strong> IIP on revised base would be released from 2026-27.&nbsp;<\/strong><\/li>\n\n\n\n<li>For CPI, <strong>2024 has been identified as the revised base year <\/strong>as the item basket and the weightage of the items would be decided based on the <strong>NSO\u2019s Household Consumer Expenditure Survey (HCES) conducted in 2023-24.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>The new CPI series is expected to be published from the <strong>first quarter of 2026.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Base Year?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A base year is a <strong>benchmark year <\/strong>used for<strong> comparison in economic and statistical calculations.&nbsp;<\/strong><\/li>\n\n\n\n<li>It provides a<strong> reference point<\/strong> against which <strong>current values of indicators like GDP, CPI, and IIP are measured<\/strong> to track real changes over time.<\/li>\n\n\n\n<li><strong>Significance:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>It allows us to<strong> remove the effect of inflation<\/strong> and see real growth.<\/li>\n\n\n\n<li>Helps in creating <strong>index numbers<\/strong> (like CPI = 100 in base year).<\/li>\n\n\n\n<li>Ensures that the <strong>data reflects the current structure of the economy,<\/strong> consumption patterns, and prices.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for the Change of the Base Year?&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is usually changed every 7\u201310 years to reflect:\n<ul class=\"wp-block-list\">\n<li>New consumption patterns;<\/li>\n\n\n\n<li>Changes in economic structure;<\/li>\n\n\n\n<li>Introduction of new goods and services.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Ensures data remains relevant and accurate.<\/li>\n\n\n\n<li>This will give a clearer picture about the state of the economy which will help the government to design its economic policies.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Economic Datasets<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gross Domestic Product (GDP): <\/strong>GDP is the <strong>total monetary value of all final goods and services<\/strong> produced within a <strong>country&#8217;s domestic territory <\/strong>during a <strong>specific period (usually a quarter or a year).<\/strong>\n<ul class=\"wp-block-list\">\n<li>It is calculated by <strong>adding up all the expenditures<\/strong> made in the economy, including <strong>expenditures by Indians in their individual capacity, expenditures by governments, expenditures by private businesses, etc.<\/strong>&nbsp;<\/li>\n\n\n\n<li>This provides a picture of the <strong>demand side of the economy.<\/strong><\/li>\n\n\n\n<li><strong>Current base year used 2011\u201312.<\/strong><\/li>\n\n\n\n<li><strong>Released By:<\/strong> National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/12-02-2022\/index-of-industrial-production-iip\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/12-02-2022\/index-of-industrial-production-iip\">Index of Industrial Production (IIP)<\/a>:<\/strong> IIP measures the <strong>volume of production<\/strong> in the <strong>industrial sector, <\/strong>including mining, manufacturing, and electricity.\n<ul class=\"wp-block-list\">\n<li>It is a volume-based index, not value-based like GDP.<\/li>\n\n\n\n<li>Indicates industrial activity, helping assess the short-term economic momentum.<\/li>\n\n\n\n<li><strong>Published monthly<\/strong> and the base year currently is <strong>2011\u201312<\/strong> (revision to 2022\u201323 is underway).<\/li>\n\n\n\n<li><strong>Released By: <\/strong>NSO, MoSPI.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Consumer Price Index (CPI): <\/strong>CPI measures the<strong> average change in prices<\/strong> paid by <strong>consumers for a basket of goods and services <\/strong>over time \u2014 i.e., it tracks retail inflation.\n<ul class=\"wp-block-list\">\n<li>Tracks cost of living and purchasing power.<\/li>\n\n\n\n<li>Includes items like food, housing, clothing, transport, etc.<\/li>\n\n\n\n<li>It is published <strong>monthly,<\/strong> the <strong>current base year: 2012<\/strong> (to be revised to 2024).<\/li>\n\n\n\n<li><strong>Released By: <\/strong>NSO, MoSPI.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>By updating the base years\u2014GDP and IIP to 2022\u201323 and CPI to 2024\u2014India aims to capture <strong>recent shifts<\/strong> in consumption patterns, industrial output, and price structures.&nbsp;<\/li>\n\n\n\n<li>These changes will ensure that the data used for economic analysis and policy formulation is more<strong> accurate, relevant, and reflective of contemporary conditions.&nbsp;<\/strong><\/li>\n\n\n\n<li>This, in turn, will enhance the<strong> effectiveness of government planning, policymaking, and monitoring<\/strong> of the country\u2019s economic progress.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/new-base-year-for-gdp-cpi-iip-from-early-2026-services-survey-from-jan-mospi-secretary-10055289\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">As per the Ministry of Statistics and Programme Implementation (MoSPI), Gross Domestic Product (GDP), Index of Industrial Production (IIP) and Consumer Price Index (CPI) will see a new base from next year onwards.<\/li>\n<p><\/p>\n<h3><strong>About<\/strong><\/h3>\n<li class=\"ms-5\">In 2024, MoSPI has set up a 26-member Advisory Committee on National Accounts Statistics to decide the base year for GDP data.<\/li>\n<li class=\"ms-5\">Biswanath Goldar has been appointed as its chairman.<\/li>\n<li class=\"ms-5\">For GDP, the new series is scheduled to be released on February 27, 2026 with financial year 2022-23 as base year.\u00a0<\/li>\n<li class=\"ms-5\">For IIP, 2022 -23 has been tentatively identified as the revised base. IIP on revised base would be released from 2026-27.\u00a0<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/09-06-2025\/new-base-year-gdp-cpi-iip-2026\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44954","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=44954"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44954\/revisions"}],"predecessor-version":[{"id":45042,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44954\/revisions\/45042"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=44954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=44954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=44954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}