Statistics Ministry Proposes Common Framework for State GDP Calculation

The statistics ministry has unveiled a common framework for calculating state gross domestic product to enhance consistency across India. The new approach employs an expenditure-based methodology aligned with the revised 2022-23 base year for national accounts.

A key gap in current state-level GDP estimation is the absence of private final consumption expenditure data compiled by states. The proposed framework seeks to address this by leveraging administrative data to allocate estimates uniformly across all states and union territories.

The initiative is designed to improve comparability of GSDP figures nationwide, enabling better assessment of economic performance at the sub-national level and supporting more informed policy decisions.