GDP growth in the fourth quarter (January-March) of the financial year 2025-26 was 7.8%. The Ministry of Statistics and Program Implementation released these figures on June 5. This time the GDP has been calculated on the basis of 2022-23 instead of the base year 2011-12. The government said that GDP has grown at the rate of 7.7% in the entire financial year 2025-26, which was 7.1% last year. Earlier in February, the government had estimated it at 7.6%. Servants, drivers and e-vehicle data also included. In the new GDP series, 2022-23 has been made the base year. To make economic projections more accurate, it now also includes data related to GST network, e-vehicle database and services of home-based cooks, drivers and domestic servants. Usually the base year is changed every 5 years. The base year is changed from time to time to record major changes in the economy over time. Usually the ministry updates the data series every five years, but this work was delayed due to the Covid pandemic and implementation of GST. New figures till 1950 will come by December 2026. The government will not only release new figures, but will also recalculate the old figures according to the new base year. The ministry has indicated that ‘back-series’ data (data up to 1950-51) under this new framework is expected by December 2026. New measurements will increase accuracy; The standards should be changed every 5 to 10 years. Why was the method of measuring GDP changed? The 2011-12 scale was 14 years old. At that time, things like UPI, Zomato, OTT, gig economy did not exist. That’s why this was necessary. Why was 2022-23 chosen as the base year? This year was ‘normal’. Corona was over. The economy was stable. Digital India had been established. The base year is always chosen when there is neither much rise nor fall. What effect will this have on the common man? There is no direct impact on the pocket, but with correct data the government will make better policies. Money will be invested in the right place and foreign investment will also increase, the benefits of which will gradually reach the common citizen. Were the figures changed or something hidden? No. It is natural that measurements change when measured using a new scale. America, Britain, China all do this. Changing figures is a sign of accuracy. At what frequency should it be changed? According to international standards, it should be changed every 5 to 10 years. It was fixed for 5 years in the country, but got delayed due to demonetization and GST in 2017-18. After this Covid came, so did it now. Knowledge Part: What is Base Year? Base year is the year in which today’s economic progress is measured considering the prices as ‘fixed’. It helps show the ‘real’ growth of the country by removing the effect of inflation. Example: If a pen was worth Rs 5 in 2011 and is worth Rs 10 today. If we are making 100 pens even today, the GDP as of 2011 will be Rs 500. As per today it will be Rs 1000. Base year helps us understand whether we are making more pens or whether pens have simply become expensive. GDP tells the health of the economy i.e. how much value of goods were produced and how many services were provided within the country in a given time. It can also be called the ‘report card’ of the country’s economic health. In this, not only the production of Indian companies but also the production of foreign companies working in the country is included. Two types of GDP: Real and Nominal Real GDP: In this, the price of goods and services is decided from the base. Till now its year was 2011-12. This shows whether production in the country has really increased or not. Nominal GDP: It is based on the current market price. Inflation is also included in this. If the prices of goods are increasing, then the nominal GDP will also appear to be increasing. How is GDP calculated? A special formula is used to calculate GDP: $GDP = C + G + I + NX$ C (Consumption): That is, what we and you spend on our needs. G (Government): Expenditure spent by the government on the development and facilities of the country. I (Investment): Investment made by companies to expand their business. NX (Net Exports): Subtracting goods purchased from goods sold to other countries.
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GDP growth in the fourth quarter was 7.8%: The economy grew at the rate of 7.7% in FY-26, in February the government had estimated this at 7.6%.
