New Base Year for GDP, CPI, and IIP Starting in Early 2026

In 2024, MoSPI established a 26-member Advisory Committee on National Accounts Statistics to determine the base year for GDP figures.

Biswanath Goldar has been named as its chairman.

The new series for GDP is set to be launched on February 27, 2026, with the base year being 2022-23.

For IIP, 2022 -23 has been preliminarily recognized as the updated base. IIP based on the revised base will be published starting from 2026-27.

For CPI, 2024 has been designated as the updated base year since the item basket and the weights assigned to the items will be determined using the NSO’s Household Consumer Expenditure Survey (HCES) carried out in 2023-24.

The updated CPI series is anticipated to be released starting in the first quarter of 2026.

What does Base Year mean?

A base year serves as a reference year utilized for comparisons in statistical and economic analyses.

It serves as a benchmark for measuring current values of indicators such as GDP, CPI, and IIP to monitor actual changes over time.

Importance:

It enables us to eliminate the influence of inflation and observe actual growth.

Assists in forming index figures (such as CPI = 100 in the base year).

Guarantees that the data mirrors the present organization of the economy, spending habits, and costs.

Necessity for Altering the Base Year?

It is typically updated every 7–10 years to represent:

Emerging consumption trends;

Shifts in economic framework;

Launch of new products and offerings.

Guarantees that information stays pertinent and precise.

This will provide a better understanding of the economy's condition, aiding the government in crafting its economic policies.

Economic Data Collections

Gross Domestic Product (GDP): GDP represents the overall monetary worth of all final goods and services created within a country's borders over a certain timeframe (typically a quarter or a year).

It is determined by summing all the spending within the economy, encompassing spending by individuals, government expenditures, spending by private companies, and more.

This illustrates the demand aspect of the economy.

The base year currently utilized is 2011–12.

Published By: National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).

Index of Industrial Production (IIP): The IIP quantifies production levels within the industrial sector, which encompasses mining, manufacturing, and electricity generation.

It is an index based on volume, not on value like GDP.

Reflects industrial engagement, aiding in the evaluation of immediate economic progress.

Released every month, with the base year currently set as 2011–12 (a revision for 2022–23 is in progress).

Published By: NSO, MoSPI.

Consumer Price Index (CPI): CPI reflects the typical variation in prices consumers pay for a collection of goods and services over time — in other words, it monitors retail inflation.

Monitors living expenses and buying capacity.

Comprises elements such as meals, accommodation, apparel, transportation, etc.

It is released every month, with the current base year being 2012 (set to be updated to 2024).

Issued By: NSO, MoSPI.

Conclusion

By revising the base years—GDP and IIP to 2022–23 and CPI to 2024—India seeks to reflect recent changes in consumption trends, industrial production, and price frameworks.

These modifications will guarantee that the information utilized for economic evaluation and policy development is more precise, applicable, and representative of current circumstances.

This will subsequently improve the efficiency of government planning, policymaking, and oversight of the nation’s economic development.