Context: India's Ministry of Statistics and Programme Implementation (MoSPI) has revised past GDP growth figures after switching to the Producer Price Index (PPI) for 'double deflation' in the new 2022-23 base-year GDP series. The change corrects earlier distortions caused by using a single deflator (like WPI) for both inputs and outputs, especially in the services sector.
MoSPI unveiled a new GDP series in February 2026 with the base year shifted from 2011-12 to 2022-23. This week, past GDP growth figures were revised again because MoSPI moved from CPI/WPI-based double deflation to PPI (Producer Price Index)-based double deflation to calculate 'real' GDP more accurately.
Central to GS3 (Indian Economy — national income accounting, growth measurement). Understanding base-year revisions, deflation methods, and their effect on real GDP figures is a recurring theme for both Prelims (economic surveys, MoSPI reports) and Mains (measurement of growth, statistical reforms).
Test your understanding
Q1.In India's revised GDP series, the shift to 'double deflation' using the Producer Price Index (PPI) was primarily meant to correct distortions in which sector's real growth estimates?