Source: TOI
Why in News?
The Government released Second Advance Estimates of GDP based on the new national accounts series. India’s GDP growth for FY 2025–26 is now estimated at 7.6%, higher than earlier projections.
Key Highlights:
- FY 2025–26 GDP growth revised to 7.6%.
- Earlier First Advance Estimate (January): 7.4% (based on old series).
- New GDP series includes:
- Updated base year: 2022–23 (earlier 2011–12).
- Improved methodologies.
- Additional data sources for better accuracy and granularity.
Revisions to Previous Years
- FY 2023–24 growth revised down:
- From 9.2% (old series) → 7.2% (new series)
- FY 2024–25 growth revised up:
- From 6.5% → 7.1%
Nominal GDP Impact
- Nominal GDP (size of the economy) revised downward for 2023–26.
- This may worsen key fiscal indicators such as:
- Fiscal deficit-to-GDP ratio
- Debt-to-GDP ratio
