NSO Issues New Draft Guidelines for GSDP Estimation, Sets 2022-23 as Base Year
The National Statistical Office has released new guidelines for calculating Gross State Domestic Product (GSDP) based on the expenditure method, adopting 2022-23 as the revised base year.
The National Statistical Office (NSO) of the Union Ministry of Statistics and Programme Implementation has prepared draft guidelines for the compilation of Gross State Domestic Product (GSDP) estimates based on the expenditure method, designating the year 2022-23 as the base year. These guidelines have been made available on the official website of the Ministry.
The primary objective of these draft guidelines is to provide a uniform and comprehensive framework for preparing GSDP estimates across states and union territories. This initiative aims to ensure uniformity, comparability, and methodological standardization of estimates within the revised base year framework.
The guidelines provide a detailed explanation of concepts, data sources, coverage, and the estimation process related to the compilation of GSDP from the expenditure side. Key expenditure components included are Private Final Consumption Expenditure (PFCE), Government Final Consumption Expenditure (GFCE), Gross Fixed Capital Formation (GFCF), changes in inventories, valuables, and net exports.
According to the current status, some states and union territories are preparing estimates for Government Final Consumption Expenditure and Gross Fixed Capital Formation; however, no state or union territory is currently preparing estimates for Private Final Consumption Expenditure. This draft will provide the necessary guidance for preparing estimates for all these components.
The guidelines emphasize the use of state-specific data sources and appropriate allocation indicators. In cases where direct state-level data is unavailable, appropriate allocation methodologies have been recommended to ensure consistent and comparable estimates.
This compilation based on the expenditure method will serve as a crucial complementary approach to GSDP assessments conducted via the production or income sides, enabling a more comprehensive evaluation of economic activities within the states. This initiative will help strengthen the state-level national accounts framework and harmonize it with national methodologies. Additionally, it will enhance the statistical capacity of the Directorates of Economics and Statistics (DES) of the states.
To gather suggestions and feedback from stakeholders, these draft guidelines will remain available on the official website of the Ministry of Statistics and Programme Implementation until October 28, 2026.
