MoSPI Announces Base Year Revisions for GDP and CPI
Why focus: MoSPI base year shift (2022-23) — prime GS3 Economy fodder for Assertion-Reason questions on GDP and CPI calculation methodology.
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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GDP and IIP Base Year: BEFORE it was 2011-12, NOW it will be shifted to 2022-23 to better capture the modern economic structure.
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Consumer Price Index (CPI) Base Year: BEFORE it was 2012, NOW it is being updated to 2024, utilizing the latest Household Consumer Expenditure Survey to update the goods and services basket.
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PLFS Frequency: BEFORE, high-frequency quarterly estimates were restricted to urban areas while rural areas relied on annual data; NOW, the revamped methodology will provide monthly and quarterly estimates for both rural and urban areas.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the recent statistical reforms announced by MoSPI? 1. The base year for the Consumer Price Index (CPI) is being updated to 2022-23 to perfectly align with the new Gross Domestic Product (GDP) base year. 2. The revamped Periodic Labour Force Survey (PLFS) methodology aims to provide high-frequency quarterly and monthly estimates for both rural and urban areas.