India Overhauls GDP Data: Adopts Double Deflation, Addresses IMF Concerns

• India will adopt double deflation across all sectors in its new GDP series, a method not used previously.
• The move addresses IMF concerns regarding statistical discrepancies and the use of an old base year.
• New CPI series based on HCES 2023-24 will have expanded coverage and align with global standards, with changes reflected in Feb 12 data.
• Government is engaging with IMF, World Bank, and stakeholders; five panels formed for base year revision.
• New base year for national accounts will be 2022-23, effective from February 27, 2026.

Why It Matters: India is modernizing its GDP calculation with double deflation and a new base year to enhance data credibility.