Page 15 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

with base year of 2011–12. The Financial Year (FY) 2022–23 has been selected as base year, as it
represents a recent normal year (after COVID), with availability of robust and comprehensive data
across sectors of the economy, making it an appropriate benchmark for the new series of Annual and
Quarterly National Accounts Estimates.

GDP base year has been revised to FY 2022-23 due to the following reasons: -

? Over the past decade, India’s economy has evolved considerably, with the expansion of
renewable energy and digital services, alongside changes in consumption patterns and
investment behaviour. Rebasing enables GDP and related indices to better capture the
contribution of emerging sectors, shifts in relative prices, and advances in technology and
productivity.

? At the same time, rapid digitisation has expanded the availability of high-frequency data,
strengthening the precision of national accounts. Real-time systems such as e-Vahan (vehicle
registrations), the Public Financial Management System (PFMS), and the GST network now
provide granular economic insights that enhance the robustness of GDP estimates.

? Besides, periodic revisions also support alignment with international best practices
recommended by the UN Statistical Commission, ensuring that India’s statistical framework
remains methodologically sound and globally comparable, particularly in areas such as digital
economy measurement and supply-use tables.

KEY HIGHLIGHTS OF NEW GDP SERIES (BASE YEAR 2022-23)

? Real GDP has been estimated to grow by 7.6% in FY 2025-26. Nominal GDP has witnessed a
growth of 8.6%. These growth rates are revised upward from their respective First Advance
Estimates computed using previous Base Year (2011-12).

? Overall economic performance in FY 2025-26 is primarily on account of robust Real growth
observed in Second Quarter (8.4%) and Third Quarter (7.8%).

? The economy has exhibited sustained performance, recording Real GDP growth rates of 7.2%
and 7.1% respectively during FY 2023-24 and FY 2024-25.

? Nominal GDP has registered 11.0% and 9.7% growth rates during FY 2023-24 and FY 2024-25
respectively.

? Manufacturing sector has been the major driver in contributing to the resilient performance of
the economy in consecutive 3 financial years after rebasing. This sector has attained double digit
growth rates in FY 2023-24 and FY 2025-26.

? Secondary and Tertiary sectors have boosted the performance of the economy by registering
above 9.0% growth rate in FY 2025-26.

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