Change in Base Year

Date: January 31, 2015

base year Indian economy GDP Financial year

 CSO changed base year to 2011-12

The central statistical office (CSO) has announced a new series of national income accounts with 2011-12 as base year. The base  year is used as the basis for comparison from base year to current year. The base year is also the year whose prices are used to value something in real terms or after adjusting for inflation. 

The base year of the national accounts is changed periodically to factor in structural changes in the economy and present a more realistic picture of macroeconomic aggregates. The base year change is in line with the system of national accounts and the internationally agreed standard set of recommendations to compile measures of economic activity in accordance with strict accounting conventions based on economic principles.

The National Statistical Commission has recommended changing the base year of National Accounts Statistics every five years.

Various estimates according to changed Base Year:-

1- The change has pushed up the economic growth rate for 2013-14 to 6.9 per cent, while earlier estimate on the basis of old series was 4.7 per cent.The economic growth rate for 2012-13 has been revised upwards to 5.1 per cent, compared with 4.5 per cent estimated earlier.

2-The increase in the size of the economy will lower fiscal deficit and current account deficit (CAD) ratios till FY14.

3- The rate of Gross Capital Formation at constant (2011-12) prices has decreased from 37.2 per cent in 2012-13 to 33.4 per cent in 2013-14.

4- Per capita income at current prices has been estimated at Rs 64,316 for 2011-12 , Rs 71,593 for 2012-13 and Rs 80,388 for 2013-14 financial year.