India Overhauls GDP Calculation Methodology
Analysis based on 6 articles · First reported Feb 24, 2026 · Last updated Feb 24, 2026
The overhaul of India's GDP calculation methodology is expected to improve data accuracy, particularly in manufacturing, which could lead to more reliable economic indicators for investors. This move by India addresses previous concerns raised by the International Monetary Fund, potentially boosting confidence in India's economic reporting.
India is set to overhaul its real GDP growth calculation methodology under a revised national accounts series, launching this week. The changes, announced by Saurabh Garg of the India — Ministry of Statistics and Programme Implementation, involve adopting more granular price deflation by using 500-600 items from the new CPI and old WPI series, up from 180. This addresses concerns from economists and the International Monetary Fund regarding the outdated reliance on the wholesale price index and single deflation. The core of the reform is a shift to double deflation, which separately adjusts output and input prices to measure real value added, aiming to improve accuracy, especially in the manufacturing sector. A new GDP series with a 2022/23 base year will be released on February 27, along with back-series data for the previous four years. Under the old series, India's economy was estimated to expand by 7.4% in 2025/26.
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