Discuss briefly the major changes involved in the recent revision in the base year and method of national…

Question

Discuss briefly the major changes involved in the recent revision in the base year and method of national income accounting.

Ghissu Editorial · Accepted Answer

The 2015 revision shifted the base year from 2004-05 to 2011-12, adopted GVA at basic prices and drew on the MCA21 corporate database. Later refinements, guided by ACNAS (2024), add ASUSE and PLFS data, align with SNA 2008 and move toward a chain-base method.

**Introduction**

The 2022-23 base year⟦1⟧ revision in national income accounting incorporates new data sources and international standards to better capture India’s dynamic economy and improve GDP estimates⟦3⟧⟦2⟧.

**Enhanced Institutional Framework**

1. **ACNAS and Sub-Committees**: The Advisory Committee on National Account Statistics (ACNAS), formed in June 2024, along with sub-committees like the Sub-committee for Incorporation of New Data Sources, Rates and Ratios⟦4⟧, and Sub-committee for Methodological Improvement, steered the revision process ensuring adherence to SNA 2008 and preparation for SNA 2025.  
2. **New Data Sources and Valuation**: Integration of ASUSE and PLFS data enhances informal sector coverage; retaining the 2011-12 series' valuation of GVA at basic prices captures production taxes and subsidies more accurately.

**Implementation Challenges and Outcomes**

3. **Chain-Base Method and Structural Changes**: Adoption of chain-base method enables annual updating of weights, reflecting rapid economic shifts such as the gig economy and new industries more promptly.  
4. **Corporate and Regional Data Integration**: Use of MCA21 database and inclusion of financial sector entities improve output measurement; state-level data, including from ==Andhra Pradesh==, supports targeted development and projects like ==Polavaram==.

**Way Forward**

5. **Strengthen State Data and Digital Integration**: Enhancing state statistical capacity, especially in ==Andhra Pradesh==, and leveraging digital data such as MCA21 and GST returns will improve data granularity and tracking.  
6. **Improve Data Dissemination**: Aligning with IMF’s SDDS guidelines will ensure timely and transparent release of national accounts⟦5⟧ data.

**Conclusion**

The revision marks a major step towards accurate, timely, and internationally comparable economic statistics, underpinning evidence-based policymaking and inclusive growth aligned with Viksit Bharat 2047 and SDG 8.

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