India's Q3 GDP hits 7.8%, new base-year series due by 2026
India's Q3 GDP hits 7.8%, new base-year series due by 2026
India's economy shows momentum with 7.8% Q3 growth as MoSPI plans a new GDP series based on 2022-23, with back-series revisions slated for 2026.
India's economy is showing momentum, with third-quarter growth clocking 7.8%. Alongside this, the statistics ministry has announced a revamp of the GDP series, using 2022-23 as the base year. The new series will not rely on the single-deflator method previously used for most sectors and will be built through a mix of splicing and recalculation, aligned with international best practices. The final methodology will be decided in consultation with an advisory committee, and back-series estimates are expected to be released by December 2026.
Historically, India last updated its GDP series in 2015 when 2004-05 was the base. Revisions then altered growth rates for several years, prompting debate, including remarks by the RBI governor at the time about the economy’s pace in 2013-14. The shift to a new base is intended to reflect price movements more accurately and avoid overstating growth when commodity prices diverge from consumer prices.
Separately, the December quarter’s 7.8% growth underscores resilience in a global slowdown, with the economy continuing to expand at a rapid pace relative to many peers. The move to a new GDP framework aims to provide a clearer, more comprehensive picture of sectoral contributions and overall economic size, while ensuring consistency with international standards. The government has signalled that the back-series revisions will be rolled out in a staged manner as the committee finalizes the methodology, with full release by late 2026.
