Blurb: The Finance Ministry’s latest review says the revised GDP series reshapes India’s economic measurement, adjusting sector shares and spending patterns while improving data methods
New Delhi
India has introduced a revised Gross Domestic Product (GDP) series that changes the way the country’s economy is measured and understood. According to the Finance Ministry’s February 2026 Monthly Economic Review, the update revises estimates of the economy’s size, sector composition, and spending patterns while improving the overall statistical system.
The new GDP series uses 2022-23 as the base year, replacing the earlier 2011-12 base. Officials said the updated base year reflects a more stable economic period after the pandemic and provides better data coverage. The review states that the revised framework resets key macroeconomic measurements including growth rates, sector shares, and expenditure patterns used to guide fiscal and monetary policies.
The revision slightly changes the estimated size of the Indian economy. The report noted that the nominal GDP level is about three percent lower than earlier estimates as of March 2026. However, it emphasised that India’s economic growth remains strong. The revised data still show three consecutive years of growth above seven percent following the pandemic.
The updated series also includes several improvements in data collection and estimation. It introduces new calculation methods for sectors such as manufacturing and agriculture and uses administrative data sources like the Goods and Services Tax system and the Public Financial Management System. Surveys have also been used to better estimate activity in the unorganised sector.
As a result, the structure of the economy appears slightly different. Agriculture’s share rises to 17.4 percent while industry increases to 25.4 percent. The services sector share falls slightly to 48 percent. Private consumption declines to 56.7 percent, while investment rises to 31.9 percent.
Officials said these adjustments mainly reflect improved measurement rather than sudden changes in economic activity. A historical back series under the new system will be released by December 2026 for comparison.
