New Series Of National Accounts With Updated Base Year to be Released By the Government

Changing Numbers: New Series Of National Accounts With Updated Base Year to be Released By the Government

Currently, the GDP is computed on a 2004-2005 base year, but this is soon going to change. Interested in seeking a more realistic picture of the Indian economy, the government of India will release a new series of national counts with 2011-2012 as the base year for the computation of the economic growth rate. The Gross Domestic Product or GDP data is based on a new series and it will be released with respect to 3 consecutive years using 2011-2012 as the base year in January next year.

Currently, the GDP is computed using the 2004-2005 base year. “The new series will better reflect the economy as it would include more sectors. However, it would be difficult to say whether there would be any significant change in growth rates for the previous years,” National Statistical Commission Chairman Pronab Sen has been quoted as saying by the Hindu. Sen proposed the formulations using the new series.

He also cautioned that it may take up to one year to check regarding the change in growth rates of different sectors plus the complete economy based on the new series within the previous years.

“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,” as official statement released by the commission said.

New Series Estimates

As these estimates are being compiled for the first time, it will be referred to as the New Series estimates. The base year will also be revised for the consumer price index or CPI as well as the WPI or the wholesale price index and the index of industrial production or the IIP.

The base year for the consumer price index will also be revised in such a way that the release for at least two of the new series namely those pertaining to IIP and WPI will be March in 2016. The growth in the new IIP and WPI series will be included in the provisional estimates of the year 2014-2015 to be released in May 2016.

The National Statistical Commission has also indicated that the base year for computation of the national account should be revised after 5 years each time. The base year of the national accounts is periodically changed for getting the true picture of the economy. The changing numbers will definitely show a more real picture of where the Indian economy is right now.