2022-23 or 2023-24? A Time-Consuming Process with Crucial Implications for Economic Data Accuracy

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2022-23 or 2023-24? A Time-Consuming Process with Crucial Implications for Economic Data Accuracy

Revision of Base Year for National Accounts in India

the financial years 2022-23 and 2023-24. These years are preferred due to the availability of updated data sets from various surveys conducted during these periods.

The committee acknowledges that updating the base year is a complex and time-consuming process. The previous revision, which established 2011-12 as the base year, took several years to complete.

The committee's first meeting will address several key issues, including the specific base year to be adopted and the alignment of the new base year with other economic indicators like the Wholesale Price Index (WPI), Producer Price Index (PPI), Consumer Price Index (CPI), and Index of Industrial Production (IIP).

The Ministry of Statistics and Programme Implementation (MoSPI) constituted the 26-member Advisory Committee on National Accounts Statistics in June 2023. The committee, chaired by Professor Biswanath Goldar, is tasked with reviewing existing data, identifying new data sources, and advising on methodologies for compiling and presenting national accounts statistics.

The committee's recommendations will be crucial for ensuring accurate and timely economic data in India. The tenure of the committee is five years, or until the completion of the next base year revision, whichever is later.

Previously, an advisory committee had recommended 2020-21 as the new base year, but this proposal was not implemented. The National Statistical Commission recommends updating the base year every five years to ensure data accuracy and relevance.