Context
The government released revised national accounts with base year 2022–23. Second advance estimates peg FY2025–26 GDP growth at 7.6%, higher than the earlier 7.4%.
GDP (Gross Domestic Product)
• Represents the total value of final goods and services produced within India in a year.
• Formula: GDP = GVA + Taxes on products − Subsidies.
• Used to measure the overall size of the economy.
GVA (Gross Value Added)
• Measures value addition by producers across sectors such as agriculture, industry and services.
• Formula: GVA = Output − Intermediate Consumption.
• Reflects sector-wise performance more directly.
Why GVA Is Analytically Preferred
• Directly shows sectoral contribution.
• Minimises distortions from tax changes.
• Useful for analysing structural shifts.
• GDP can fluctuate due to indirect tax variations rather than real production changes.
Key Changes in the New Series
• Base year shifted from 2011–12 to 2022–23.
• Improved methodology adopted.
• Greater use of GST data and enhanced datasets.
• Historical growth numbers revised.
Important Data
• FY26 GDP growth: 7.6% (Second Advance Estimate).
• Earlier estimate: 7.4%.
• FY25 revised upward to 7.1% (earlier 6.5%).
• FY24 revised downward to 7.2% (earlier 9.2% in old series).
