The method of measuring inflation-GDP will change from February: Government will release a new series; Currently the figures are calculated on the basis of 2011-12

The central government is going to make a big change in the parameters of measuring the country’s economy. From February 2026, retail inflation (CPI) and country’s growth rate i.e. GDP data will be released with the new series (new base year). At the same time, the figures of Industrial Production i.e. IIP will also be released in a new series from May 2026.

The new base year for GDP and IIP will be 2022-23. The base year for retail inflation will be 2024. The Ministry of Statistics and Program Implementation (MoSPI) has completed its preparations.

Currently, GDP and retail inflation figures are calculated according to the old base year 2011-12. Whereas in many countries of the world it is updated every 5 years. The main objective of this change in the base year is to make the data more accurate according to the current needs and consumption.

What will change with the new base year?

At present, the old base year is being used for calculating inflation and GDP in the country. For a long time, experts were demanding that the base year be updated.

Because people’s spending patterns and preferences for goods have changed in the last decade. With the arrival of the new series, government data will be able to present a more realistic picture of the country’s economic situation.

Weightage of food items will be reduced

At present, the share of food items in the calculation of retail inflation is very high. According to ministry officials, the ‘weightage’ of food items can be reduced in the new series.

This is because as people’s income increases, they start spending more on other facilities like education, health and entertainment instead of food. These modern needs will be given more importance in the new series.

IIP data will come in new series from May

Industrial Production (IIP), which tells the pace of the country’s manufacturing and mining sectors. It will be shifted to the new series from May 2026. This will include those new products whose production has started in recent years. Whereas those old goods which are no longer in demand in the market can be removed from the list.

Why was this change necessary?

Statistics Ministry Secretary Saurabh Garg had earlier also indicated that the process of improving the data is going on. India is one of the fastest growing large economies in the world.

In such a situation, releasing data on old standards often creates problems in making policies. With the arrival of the new base year, the Reserve Bank (RBI) will also find it easier to take decisions on interest rates. Because they will have more accurate inflation data.

What will be the impact on the general public?

It does not directly affect the common man’s pocket, but government schemes are based on this data. If the inflation data is correct, the government will be able to take better steps to control prices. Besides, accurate GDP data also increases the confidence of foreign investors in the Indian economy.

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