New GDP series to have wider adoption of double deflation, says MoSPI Secretary Garg
Statistics Ministry will begin adoption of double deflation more widely in the new series of National Account data or GDP data from next month. In an interview to businessline, Dr Saurabh Garg, Secretary in the Ministry of Statistics and Programme Implementation (MoSPI), said that the new series will have newer sources in addition to an expanded use of the administrative data set. Double deflation is the technique used to estimate real value added of an industry. In this method, real value added is measured as the difference between real gross output and real intermediate inputs.
What are the new additions and deletions in the new series of National Accounts?
The new series of National Accounts is being rebased to FY 2022-23, with its release scheduled for February 27, 2026. The revised series incorporates several new and updated data sources, including major surveys such as the Household Consumption and Expenditure Survey (HCES), Annual Survey on Unincorporated Sector Enterprises (ASUSE), Periodic Labour Force Survey (PLFS), Annual Survey of Industries (ASI) and the All-India Debt and Investment Survey (AIDIS) (2019).
In addition, there would be expanded use of administrative datasets such as GST data, Public Finance Management System data, e-Vahan and petroleum sector data. The new series also introduces methodological refinements, including wider adoption of double deflation (whenever feasible) and volume or single extrapolation methods, particularly in manufacturing, mining and construction sectors.
As part of the rebasing exercise, reliance on single deflation methods and benchmark-indicator extrapolation for the informal sector is being done away with by using the improved data availability scenario.
There has always been an issue with regard to highlighting per capita income. What is the plan to make it easier and more visible?
Per capita income is one of the prominent indicators in National Accounts Statistics (NAS). To make these statistics readily available to users, we have revamped the dissemination on our website. It can be accessed through eSankhyiki Portal.
What are the new items in the new series of CPI?
The CPI 2024 series has been comprehensively updated to reflect changes in household expenditure patterns, based on the latest Household Consumption Expenditure Survey (HCES) 2023–24. As part of this revision, the coverage of items in the CPI basket has been expanded to improve representativeness and capture emerging consumption trends.
At the all-India level, the number of weighted items has increased from 299 in CPI 2012 to 358 in CPI 2024. Within this, the number of goods items has increased from 259 to 308, while the number of services items has risen from 40 to 50, indicating enhanced coverage of service-related consumption.
The expanded item basket includes several new items reflecting structural changes in the economy and evolving consumer behaviour. Key additions are rural house rent, online media and streaming services (OTT platforms), international air fare as part of the airfare index, and modern energy sources such as Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). In addition, some items are grouped and disaggregated for aligning them according to Classification of Individual Consumption According to Purpose (COICOP) 2018 structure.
What will be the weight for various product/services groups such as food in the new series of CPI?
The weights of various product and service groups, including Food and Beverages, in the CPI 2024 series are derived from the latest Household Consumption Expenditure Survey (HCES) 2023–24 and reflect the relative importance of different goods and services in household consumption during the reference period. Compared to the CPI 2012 series, the revised weighting structure captures changing consumption patterns, with a relatively lower share of food and a higher share of non-food items and services such as housing, health, transport, communication and other consumer services.
Detailed information on the item basket and group-wise weights for the CPI 2024 series will be shared well in advance, prior to February 12, 2026, to facilitate a smooth transition and informed use by all stakeholders, including policymakers, analysts, researchers and the general public.
Will it be correct to say that with change in weight, the retail inflation rate will be less volatile?
It would not be appropriate to make an assessment regarding the impact of the revised weights on inflation volatility. The primary objective of the CPI base revision exercise is to develop a robust, transparent and representative index that accurately reflects price movement across time as per the consumption behaviour of the households.
