India’s GDP growth projected at 7.8% in Oct–Dec after data revamp

India’s economy growth projected at 7.8 per cent year-on-year in the October–December quarter, according to revised national accounts data released on Friday, following a comprehensive overhaul of the gross domestic product (GDP) series.The latest estimate marks a moderation from the previous quarter’s revised growth rate of 8.4 per cent, up from the earlier 8.2 per cent under the old series. The stronger-than-expected performance also exceeded economists’ projections of 7.2 per cent for the quarter.
For the full financial year ending March, the government now expects the economy to have expanded 7.6 per cent, compared with the earlier estimate of 7.4 per cent under the old data framework, the National Statistics Office (NSO) said.The updated figures come after the Centre revamped the methodology for calculating GDP, inflation and industrial production. The Ministry of Statistics and Programme Implementation (MoSPI) introduced changes in January aimed at strengthening data quality, credibility and policy relevance.
As part of the overhaul, the GDP base year has been shifted to financial year 2022–23 from 2011–12. The revision expands data sources and improves coverage of emerging and fast-growing sectors, addressing criticism over outdated statistical practices.“The GDP data exceeded both our and consensus expectations,” said Alexandra Hermann, lead economist at Oxford Economics. She added that improved capture of faster-growing segments suggests “the measured growth trajectory is likely to be structurally higher under the new series.”
India remains one of the world’s fastest-growing major economies. Both private consumption and gross fixed capital formation recorded growth of more than 7 per cent in the current financial year, indicating sustained demand and investment momentum.“Manufacturing sector has been the major driver in contributing to the resilient performance of the economy in consecutive three financial years after rebasing,” MoSPI said in its release.The data revamp follows earlier concerns raised by the International Monetary Fund (IMF), which in a report last year assigned India’s economic statistics a “C grade” rating, its second-lowest rank, citing issues around data accuracy.The revised series is expected to provide policymakers and investors with a more accurate picture of economic trends, as the government continues its efforts to modernise statistical systems and align them with global standards.

(Business Correspondent)