MOSPI Proposes New Base Years for GDP, IIP, and CPI to Reflect Structural Economic Changes.
National
On 6th August 2025, the Ministry of Statistics and Programme Implementation (MOSPI) proposed revising the base years for India’s Gross Domestic Product (GDP), Index of Industrial Production (IIP), and Consumer Price Index (CPI). The move, presented in the Lok Sabha by Union Minister of State (Independent Charge) Rao Inderjit Singh, aims to better capture the evolving structure of the Indian economy through updated methodologies and data sources.
- MOSPI has suggested updating the base year for GDP and IIP calculations to 2022-23, ensuring that the indices better reflect the present-day industrial and economic landscape. For CPI, the base year is proposed to be 2024, aligning inflation measurement with the latest consumption patterns in the country.
- The revision of the CPI will incorporate the updated item list and respective weights derived from the Household Consumption Expenditure Survey (HCES) 2023-24. This is expected to enhance the accuracy of retail inflation measurement by accounting for changes in consumer spending habits across rural and urban India.
- The primary goal of changing base years is to incorporate structural shifts in the economy, such as advancements in technology, expansion of services, and changes in industrial output. It also aims to improve alignment with global statistical practices and provide a more realistic assessment of economic growth and inflation trends.
Main Point :- (i) Between November 2024 and January 2025, MOSPI conducted its first Forward-Looking Survey on Capital Expenditure (CAPEX) intentions in the private corporate sector. The findings, later published, provide valuable insight into future investment trends and the sectors likely to drive India’s economic expansion.
(ii) In addition, MOSPI undertook a Pilot Study on the Annual Survey of Services Sector Enterprises (ASSSE) to capture data on the incorporated services sector. This marks an important step in measuring the economic contribution of India’s fast-growing services industry more accurately.
(iii) The proposals and survey findings were formally presented in the Lok Sabha by Rao Inderjit Singh, who holds the Independent Charge of MOSPI and Ministry of Planning, and also serves as Minister of State for the Ministry of Culture. The announcement reflects the government’s continued focus on data-driven policy formulation.
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