24/03/2026
India has updated how it calculates GDP using better and newer data sources like:
• Household Consumption Survey ( 2022–23)
• GST data
• MCA (Ministry of Corporate Affairs) database
👉 Aim: Make GDP estimates more realistic and accurate.
🚨 What are the problems in GDP estimation here?
🔴 1. No clear state-wise data for companies
• Big companies operate in many states
• But data (MCA) is available only for the whole company, not state-wise
👉 Problem:
How much output belongs to which state? ❓
👉 There’s no exact answer, so it’s estimated → can be wrong
⸻
🔴 2. Weak industrial data (ASI problem)
• Government uses ASI (factory survey) to divide manufacturing across states
👉 But:
• ASI covers very few companies
• Example:
• Real companies: ~1.35 lakh
• ASI covers: ~67k only
👉 Problem:
Half the economy is missing → wrong state estimates
⸻
🔴 3. GST data helps… but not perfect
• GST gives better business activity data
👉 But:
• Still difficult to map production to exact state
• Some firms register in one state but operate in others
👉 Problem:
Data exists, but not cleanly usable for GSDP
⸻
🔴 4. Household sector is hard to measure
• Small shops, self-employed people, informal workers
👉 No proper records
👉 Problem:
Government has to guess using surveys → less reliable
⸻
🔴 5. Huge fluctuations in estimates
• Numbers (like GVA per worker) change a lot year to year
👉 Example:
• Same sector → big jump or fall without real reason
👉 Problem:
Data is unstable, so GDP may look artificially high/low.
Comment your Suggestions 🔽⬇️