Does revising India's GDP base year change the real growth picture, or just the optics?
India has moved to revise its GDP base year from 2011-12 to 2022-23, updating the reference point used to calculate growth rates and economic composition. Statisticians say such revisions are routine and necessary to reflect a changed economy, but base year changes can also shift how headline growth numbers compare across time, making it harder for the public to judge whether the underlying economy is actually accelerating or decelerating.
Statistical agencies periodically revise GDP base years to better reflect the current structure of the economy.
A newer base year should better capture changes in the economy's sector composition since 2011-12.
Base year revisions can shift historical growth comparisons, making direct year-on-year comparisons across the change less straightforward.