The revision of India’s National Accounts base year to FY 2022–23 is being guided by the Advisory Committee on National Account Statistics (ACNAS), chaired by Prof. B.N. Goldar. To ensure comprehensive analysis, ACNAS formed five sub-committees focusing on:
- Incorporation of New Data Sources, Rates and Ratios
- Methodological Improvements
- Constant Price Estimates
- Regional Accounts
- SNA 2025 Update
Key Features of Constant Price Estimates
The Sub-Committee report introduces major methodological enhancements for estimating constant prices, aimed at increasing accuracy and consistency across annual and quarterly national accounts:
Transition to Double Deflation and Volume Extrapolation
Industries, particularly in manufacturing, will adopt double deflation, where output and intermediate consumption are deflated separately using relevant price indices to calculate value added at constant prices. For sectors where data constraints exist, volume or single extrapolation based on reliable indicators will be applied.
Specific and Disaggregated Deflators
Instead of broad-level price indices, granular data such as Unit Value Indices (UVI) at the commodity-group level will be used for exports and imports, improving precision in real estimates.
Updated Price Series
The new framework incorporates updated indices including CPI (Base: 2024), UVI (Base: 2022–23), and the latest WPI or PPI series, ensuring current and relevant deflators are applied consistently.
Enhanced Alignment and Transparency
The revised constant price methodology aligns Annual National Accounts (ANA) and Quarterly National Accounts (QNA), promoting consistency in deflators and volume indicators. This improved framework supports better policy analysis, economic forecasting, and research by offering more accurate real GDP and GVA estimates.