Updated: November 5, 2019 7:50:41 pm
At a time when India is facing an economic slowdown with GDP growing at just 5 per cent in April-June 2019, the Ministry of Statistics and Programme Implementation announced that the new base year for the GDP series will be decided in a few months. The ministry is considering 2017-18 as the new base year instead of the existing base year of 2011-12.
However, no decision has been taken as the committees of experts are awaiting some more data before finalising their opinion.
“The decision to change the base year (of GDP) would be taken in the next few months. We are waiting for the Annual Survey of Industries and the Consumer Expenditure Survey. All the preparatory work is getting ready for that. Once the result is out, we will place it before the respective committees (to decide about the base year),” MOSPI Secretary Pravin Srivastava was quoted as saying by PTI.
Speaking on the need to change the base year, Srivastava said the change in base year captures the change in structures of the economy. He also added that the decision has to be taken considering global and national scenario as well.
On whether the economy will see recovery, Srivastava said, “It is too early to comment on it because lot of inputs for tabulation depend upon the IIP (index of industrial production), CPI and WPI data, which would come in the first fortnight of November.”
Earlier, when new series with 2011-12 base year was being worked out, the ministry thought of revising it to 2009-10. But then the economists decided that 2009-10 was not a good year globally and domestically and finalised 2011-12 as the base year for new series of GDP.
Earlier in August, Finance Minister Nirmala Sitharaman had chaired a series of meetings with the industry leaders, bank representatives, ministry officials and PSU chiefs to discuss the issues impacting the economy. She announced a slew of measures aimed at boosting a flagging domestic economy. This includes an assertion that ICE (internal combustion engine) vehicles will coexist with EVs (electric vehicles) and that there is no phasing out of ICE vehicles, a fear expressed in certain quarters of the auto industry. Sitharaman also held a review meeting with the Prime Minister on the state of the economy.
(With inputs from PTI)
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