GDP data row: what a base-year revision means
Amid a political row over India's GDP figures, attention has turned to the concept of the 'base year'. A base-year revision allows the government to incorporate newer data sources, improve its methodology and better capture changes in the economy, which can look very different over a span of about five years. Such revisions periodically update the statistical base of the national accounts.
Nabka Insight
The base-year concept and why GDP series are periodically rebased is a standard economy question.
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- A base-year revision lets the government incorporate newer data sources and improve methodology.
- It helps better capture changes in the economy, which can look very different over about five years.
- The issue arose during a political row over India's GDP data.
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