How the new GDP series could alter growth figures

The National Statistical Office (NSO) has released its advance estimates for the fiscal year 2025-26, projecting an annual GDP growth rate of 7.4%. This marks a significant uptick compared to the previous decadal growth rate of 5.9%. The revised GDP series, which incorporates updated methodologies and data sources, aims to provide a more accurate reflection of the country's economic health. Experts suggest that the new GDP series could significantly alter how economic growth is perceived and measured. The updated calculations account for various factors previously overlooked, such as the informal economy and digital transactions. As a result, the revised figures may present a more comprehensive picture of economic activity, potentially affecting policy decisions and investment strategies. However, the introduction of the new series also raises questions about comparability with past data. Analysts are keenly observing how these changes will impact both domestic and international perceptions of India's economic trajectory. As the country aims for robust growth, the revised metrics will play a crucial role in shaping future economic policies and strategies.

— Authored by Next24 Live