The accounting of your income and expenditure is about to change, the government has made this big plan

India’s economic landscape is set to change drastically from next year. The government has begun preparations for this change, which will see people’s income and expenditure measured in a new way. As part of this change, major economic data such as GDP, inflation, and industrial production will be updated to reflect the current situation. Significantly, a new index will also be introduced that will track the progress of the rapidly growing service sector.

New Data, New Base Year
Currently, all economic data is based on the base year of 2011-12, i.e., the prices of that time. People’s spending habits were very different then. Back then, food and beverages were the mainstay of expenditure, but now smartphones, the internet, and digital services have become a major part of our lives. Therefore, the government has decided to update the base year so that the new data accurately reflects the current situation.

New GDP data will be released on February 27, 2026, based on 2022-23 prices. The budget estimates released on January 7th will still be based on the old base year. New inflation data will also be released in February, taking into account prices for 2023-24.

New Index for the Service Sector
The service sector plays a significant role in India’s economy, but until now, there was no specific way to measure it separately. This year, for the first time, a new service sector index will be introduced, tracking digital, logistics, and other fast-growing sectors. This change is also important because these sectors have become a major contributor to the country’s economic growth.

Improvements in Inflation and Expenditure Data
The government is not limited to GDP, but is also improving the Consumer Price Index (CPI), which measures inflation. The current prices and weights for commodities will be revised. In particular, the expenditure on food grains from the public distribution system will now be accurately included in the data. This means that the true impact of inflation can now be better understood.

The common man will benefit
These changes will provide the government with accurate and up-to-date data on the country’s economic situation. This will help formulate policies that will improve your daily life. With accurate inflation and GDP data, the government will be able to make better decisions, which will accelerate the country’s development.