National Accounts Statistics 2026

Why in News?

The Ministry of Statistics and Programme Implementation (MoSPI) released the National Accounts Statistics 2026, using 2022–23 as the new base year. The publication provides updated estimates of GDP, national income and other key macroeconomic indicators, incorporating revised statistical methodologies and updated data.

Major Changes in National Accounts Statistics 2026

Revision of Base Year

A major change is the adoption of 2022–23 as the new base year for key macroeconomic indicators. The revised series incorporates updated statistical sources, including the new Producer Price Index (PPI), Index of Industrial Production (IIP) and Banking Services Price Index (BkSPI).

Adoption of Double Deflation

MoSPI has adopted the Double Deflation method for estimating Gross Value Added (GVA) in the Manufacturing sector, in alignment with the UN System of National Accounts (SNA).

Under the earlier approach, a single deflator was used for both output and intermediate consumption. Under double deflation, gross output and intermediate inputs are deflated separately. This is intended to provide a more accurate estimate of real value added by capturing changes in the prices of both finished goods and raw materials.

Q1 FY 2026–27 Economic Performance

GDP and GVA

Real GDP at constant prices was estimated at ₹81.36 lakh crore in Q1 FY 2026–27, registering 7.8% growth, compared with 6.9% in Q1 FY 2025–26.

Nominal GDP grew by 10.3%, compared with 8.1% during the corresponding period of the previous year.

Real GVA and nominal GVA grew by 8.2% and 11.5%, respectively.

Investment and Consumption

Gross Fixed Capital Formation (GFCF) grew by 11.9%, compared with 5.8% in Q1 FY 2025–26, indicating stronger investment in fixed assets.

Private Final Consumption Expenditure (PFCE) grew by 7.1%, compared with 6.8% in the corresponding period of the previous year.

External Sector

Growth in exports of goods and services accelerated to 12.0%, compared with 6.0% in Q1 FY 2025–26.

Sectoral Performance

The primary sector grew by 2.9%, with agriculture and allied activities recording 3.6% growth.

The secondary sector's GVA expanded by 8.6%, compared with 6.1% in the previous year. Manufacturing grew by 9.2%.

The services sector recorded 10.0% real GVA growth, compared with 8.0% previously. Financial, real estate, IT and professional services grew by 12.1%.

National Accounts Statistics (NAS)

The National Accounts Statistics (NAS) is an annual publication of MoSPI that provides a comprehensive picture of India's national income, production and expenditure aggregates.

It covers important indicators such as GDP, GVA, per capita income, capital formation, savings and Private Final Consumption Expenditure (PFCE).

NAS serves as an important statistical foundation for the Union Government, RBI, researchers and policymakers to assess structural changes, evaluate policy outcomes and analyse economic trends.

Concerns Regarding India's GDP Data

Deflator Issues

The adoption of double deflation in manufacturing has generated discussion regarding the measurement of real growth. Under this approach, input costs and output prices are adjusted separately. If input prices increase faster than output prices, the resulting deflator can become negative, potentially making measured real manufacturing growth appear higher.

Representation of the Informal Sector

India has a very large informal or unorganised sector, for which real-time data is limited. Historically, growth in the formal corporate sector has been used as a proxy for parts of the informal sector.

This has raised concerns about “large firm bias”, whereby the performance of large formal firms may not accurately represent smaller and informal enterprises.

Dependence on MCA-21 Data

GDP estimation relies significantly on the Ministry of Corporate Affairs (MCA-21) database. Concerns have been raised regarding issues such as company classification and “blowing-up factors”, which may affect estimates.

The source also notes that some economists have suggested that underlying growth could be considerably below the headline 7.8% figure.

Base-Year Revision and Back-Series

Changing the base year from 2011–12 to 2022–23 requires historical data to be recalculated under the revised methodology.

The source notes concerns regarding the delayed release of the GDP back-series, which can make it more difficult to assess long-term historical growth and structural changes.

WPI versus PPI Deflator

India has historically relied heavily on the Wholesale Price Index (WPI) for deflating nominal GDP into real GDP. The adoption of a new Producer Price Index (PPI) is therefore significant.

The concern with WPI is that it has a substantial weight for commodities such as oil. Changes in global commodity prices can therefore affect measured price changes even in sectors such as services that have relatively little direct connection with those commodities.

Policy Initiatives Supporting Growth

High-Tech Manufacturing and Industrial Scaling

Initiatives such as Semicon 2.0, the Mobile Phone Manufacturing Scheme (2026–31), BHAVYA Rasayan Scheme and National Investment Policy for Urea-2026 (NIPU-2026) focus on strengthening domestic manufacturing, increasing value addition and reducing import dependence.

Energy Security and Green Infrastructure

Samudra Manthan promotes offshore oil and gas exploration, while the Surface Coal/Lignite Gasification Scheme targets 100 million tonnes of coal/lignite gasification capacity by 2030.

GOBARdhan promotes compressed biogas production from agricultural and municipal waste, supporting the waste-to-energy and circular economy approach.

The PM Surya Sarovar Yojana (2026–31) targets 5,000 MW of floating solar capacity integrated with Battery Energy Storage Systems (BESS).

Trade and Capital Markets

The India-UK CETA and Social Security Agreement is intended to expand market access for Indian exports.

The India-Israel Bilateral Investment Agreement provides a framework for cross-border investment.

The Fully Accessible Route (FAR) facilitates foreign portfolio investment in Government Securities, while the Bharat Maritime Insurance Pool (BMIP) provides protection against geopolitical and shipping-related risks.

MSME Support

ECLGS 5.0 provides credit guarantees to MSMEs and larger enterprises, while the MSME Development (Amendment) Act, 2026 focuses on simplifying compliance and supporting business expansion and formalisation.

Agriculture and Rural Demand

The PM-KISAN Extension provides continued direct income support through Direct Benefit Transfer (DBT).

Higher Minimum Support Prices (MSP) for selected Kharif crops are intended to support domestic production, particularly in areas such as oilseeds and pulses.

The Kapas Kanti Mission for Cotton Productivity focuses on improving cotton yields, pest resilience and modern agronomic practices.