The statistics ministry on Thursday issued a uniform guideline for measuring states' gross domestic products (GSDP) with 2022-23 as the base year to ensure a standardised framework and comparability of performance across all states.
The base year for the calculation of national accounts has already been changed to 2022-23 to capture the current structure of the economy more accurately by incorporating modern data sources and improved estimation practices with evolving international standards.
In line with this change, states and Union Territories are required to adopt the new base year for compilation of Gross State Domestic Product (GSDP) to ensure greater accuracy, consistency and comparability in assessing regional economic performance, the Ministry of Statistics and Programme Implementation (MoSPI) said in a statement.
ALSO READ: West Bengal Assembly, Cabinet Dissolved; Mamata Banerjee No Longer CM
This guideline will provide a standardised framework aimed at ensuring consistency, reliability and comparability of state-level estimates, it said.
GSDP is extensively used by the Ministry of Finance, Finance Commission, Comptroller and Auditor General (CAG) and other stakeholders for fiscal devolution, policy formulation, resource allocation, budgeting, performance assessment and inter-state comparisons.
At present, 34 states/UTs are compiling GSDP estimates with base year 2011-12, except Lakshadweep and Dadra & Nagar Haveli and Daman & Diu (DNH&DD).
In the new series with base year 2022–23, the ministry said it is making concerted efforts to onboard all states/UTs, including Lakshadweep and DNH&DD, to ensure complete national coverage and uniformity in the compilation of regional accounts.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
