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Five Additional Methodological Changes in GDP Series
The Ministry of Statistics and Programme Implementation (MoSPI) introduces a new GDP series with 2022-23 as the base year, replacing the 2011-12 series. MoSPI specifies five additional methodological changes to improve the accuracy, coverage, and reliability of India’s national income estimates.
GDP Methodological Changes:
| Dimension | Key Details |
|---|---|
| Improved classification of manufacturing and services | An enterprise’s GVA is distributed between manufacturing and services according to the respective contributions of these activities, instead of assigning the entire GVA to the major activity based on turnover share. |
| Data source for multi-activity classification | MoSPI uses the Ministry of Corporate Affairs’ annual MGT-7 and MGT-7A forms, which require reporting business activities contributing at least 10% of turnover, along with their respective shares. |
| Inclusion of government-provided housing services | The series estimates housing services provided to government employees living in government-owned accommodation using the cost of constructing the houses, after accounting for repairs, maintenance, and annual consumption of fixed capital. |
| Revision of useful life of fixed assets | The series revises the estimated average useful life of several assets for calculating annual consumption of fixed capital (depreciation); for dwellings, the assumed useful life is 60-75 years instead of 70-80 years. |
| MoSPI review factors for asset life | MoSPI periodically reviews the useful life of assets considering technological changes, obsolescence, operating conditions, maintenance practices, and regulatory requirements. |
| Household savings: components | Household savings comprise financial assets, physical assets, and valuables such as gold and silver. |
| Household financial savings: data source change | Data on shares, debentures, hybrid instruments, and mutual funds are sourced from the Securities and Exchange Board of India (SEBI), replacing reliance on the Reserve Bank of India (RBI). |
| Financial instruments covered via revised sourcing | The revised sourcing enables inclusion of newer investment instruments, including Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and Alternative Investment Funds (AIFs). |
| Savings in valuables | Estimated nominal household savings in gold and silver ornaments for 2022-23 is ₹1.65 lakh crore, compared to ₹64,504 crore in the previous series. |
| Survey basis and update cycle | These estimates are based on the 2019 All India Debt and Investment Survey (AIDIS); MoSPI has initiated a fresh AIDIS in July 2026, which is scheduled to conclude in June 2027. |
| Inclusion of rooftop solar electricity for self-consumption | The series includes electricity generated by households through rooftop solar panels for their own consumption. |
| Rooftop solar estimation methodology | For 2022-23 and 2023-24, estimates are based on the respective Household Consumption Expenditure Surveys and the Ministry of Health’s population projections; from 2024-25 onwards, estimates use growth in installed rooftop solar capacity reported by the Ministry of New and Renewable Energy (MNRE) along with the applicable per-unit electricity price. |
| Sector classification for rooftop solar electricity | This electricity is included in the electricity, gas, water supply, and other utility services sector. |