2011-12 to be new Base year for GDP data

From January 2015 the Union Government will release the data pertaining to the Gross Domestic Product (GDP) with a new base year of 2011-12. This new base year has been chosen so as to present a more realistic picture of the economy as it would include more sectors. This could also see a rise in growth rates as it would factor in data from excluded sectors.

As per the revision policy of the national accounts, the estimates for the year 2011-12, 2012-13 and 2013-14, due for release in January 2015, would have been the third revised estimates, second revised and first revised estimates, respectively. Since these estimates have been compiled afresh, these would be referred to as “New Series” Estimates. The government will also be revising the base year for consumer price index (CPI), wholesale price index (WPI) and index of industrial production (IIP).

What was the base year till now?

Year 2004-05 was the base year for computing the economic growth rate till now. The base year of the national accounts is changed periodically to take into account the structural changes which take place in the economy and to depict a true picture of the economy through macro aggregates. It is also worth mentioning that the National Statistical Commission (NSC) has suggested that the base year for computing national account should be revised every five years.

What was the first base year for GDP computation?

Year 1948-49 was the first base-year as the first official estimates of national income (NI) were prepared by the Central Statistical Organisation (CSO) with this year as the base year. These estimates at constant (1948-49) prices along with the corresponding estimates at current prices and the accounts of the Public Authorities were published in the publication, ‘Estimates of National Income’ in 1956.

History of Base years in India

– The base years of the National Accounts Statistics series was changed for the first time in August 1967 when this was changed from 1948-49 to 1960-61.

– In January 1978 base year was changed from 1960-61 to 1970-71.

– In February 1988 this was changed from 1970-71 to 1980-81.

– During February 1999 base year was changed from 1980-81 to 1993-94.

– The last change in base year computation was done in 2006 when it was changed from 1993-94 to 2004-05.