New GDP Series Uses Double Deflation for Most Manufacturing Sectors
· Business · Indian Express, Moneycontrol
The Ministry of Statistics and Programme Implementation applied the double deflation method to 28 out of 30 manufacturing categories in the new GDP series. The update, released in the ‘Sources and Methods’ document, aims to more accurately measure value creation by subtracting input costs from output values after accounting for inflation rates. Single extrapolation was retained for only two categories: food processing and pharmaceuticals. These two sectors involve high import shares that complicate direct mapping with elementary Producer Price Indices. The new series, which uses 2022-23 as the base year, previously drew criticism for downward nominal GDP revisions in past years.
Why it matters
Accurate calculation of Gross Value Added directly impacts how India's real economic growth is measured and understood by policymakers and financial markets.
Read the original report — Indian Express
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