Revisions in India’s Household Consumption and GDP Series

The National Statistics Office of India is set to refine the tracking of household consumption patterns by introducing new categories in the upcoming GDP series, with 2022-23 as the base year.

Revised Categories

• Oil and Fats: Includes items like butter and ghee, previously grouped under 'milk and milk products'.
• Sugar, Confectionery, and Desserts: Now includes ice cream.

The reclassification aligns with the Classification of Individual Consumption According to Purpose 2018, as recommended by the United Nations Statistical Commission.

Household Consumption Expenditure Survey (HCES)

• The 2022-23 HCES will serve as the national benchmark for item-wise private final consumption expenditure (PFCE) levels.
• It will aid in deriving basic quarterly shares for various consumption components.

Compensation Valuation for Government Employees

• The new series will incorporate housing services for central government employees using a “cost of production” approach.
• This includes annual depreciation and repair costs of government dwellings.
• The approach ensures proper compensation capture for employees with official accommodation, diverging from the 2011-12 series.

Estimation Methodologies

• Unincorporated Sector GVA: To be estimated using data from the Annual Survey of Unincorporated Sector Enterprises and the Periodic Labour Force Survey.
• Quarterly Accounts: Will undergo methodological improvements with increased reliance on administrative data.

Additional Methodological Changes

• Government final consumption expenditure will be extrapolated using quarterly revenue expenditure, excluding interest and subsidies.
• Public administration and defence GVA will be influenced by employee compensation and major pay policy adjustments.
• Changes in stocks will be assessed using broad, industry-specific indicators rather than a simple growth average.
• Valuables will be estimated from a broader basket of net imports, not confined to gold and silver.

The objective of these changes is to provide a more accurate and comprehensive measure of India’s economic activities and government services.