**Executive Summary**
The Ministry of Statistics and Programme Implementation (MoSPI) has released the final Uniform Guideline for the compilation of Gross State Value Added (GSVA) with the updated base year of 2022–23. Following a stakeholder feedback period that ended on April 27, 2026, the guideline establishes a standardized framework for States and Union Territories to align regional economic assessments with modern data and international standards. This transition is essential for determining fiscal devolution, state borrowing limits, and national economic consistency.
**Key Points / Main Content**
**Base Year Revision and Objectives**
* The base year for National Accounts and Gross State Domestic Product (GSDP) has been updated from 2011–12 to 2022–23.
* The revision aims to capture the current economic structure through modern data sources and improved estimation practices.
* The primary goal is to ensure accuracy, consistency, and comparability across all regional economic performance assessments.
**Methodological Priorities**
* **Data Integration:** Increasing the use of administrative records, sectoral databases, and survey inputs.
* **Refining Techniques:** Updating estimation methods to better reflect emerging service sectors and unincorporated enterprises.
* **National Alignment:** Ensuring state-level estimates are consistent with national aggregates.
* **Standardization:** Promoting transparent and uniform methods across all States and UTs.
**Governance and Framework Development**
* Guidelines were reviewed by a Sub-Committee on Regional Accounts chaired by Prof. Ravindra H. Dholakia.
* The committee included representatives from State Governments, the RBI, NITI Aayog, and academic institutions.
* The framework covers the compilation of State Domestic Product (SDP) and District Domestic Product (DDP).
**Strategic Importance of GSDP**
* Serves as the primary indicator for analyzing sectoral growth, fiscal planning, and tax collection.
* Functions as a critical metric for the Finance Commission in recommending the distribution of Central taxes.
* Used by the Department of Expenditure to set permissible borrowing ceilings for States under the fiscal responsibility framework.
**Impact Analysis**
**States and Union Territories**
**Impact**
States are required to shift from the 2011–12 base year to the new 2022–23 series. This affects their reported economic performance, fiscal capacity assessments, and regional development rankings.
**Action Required**
Adopt the new uniform guidelines for GSDP compilation. Regions currently not compiling estimates, specifically Lakshadweep and Dadra & Nagar Haveli and Daman & Diu, must be onboarded into the new series.
**Ministry of Finance (Finance Commission and Department of Expenditure)**
**Impact**
These bodies rely on GSDP data for resource allocation, budgeting, and fiscal federalism. The updated data will influence tax devolution formulas and the fixing of state borrowing limits.
**Action Required**
Utilize the updated 2022–23 base year estimates for future policy formulation, performance assessments, and determining state borrowing ceilings.
**Ministry of Statistics & Programme Implementation (MoSPI)**
**Impact**
The Ministry is responsible for ensuring the transition leads to complete national coverage and uniformity.
**Action Required**
Oversee the implementation of the guidelines and provide the finalized framework through its official website for state-level adoption.
Key Entities Referenced
Uniform Guideline for Compilation of Gross State Value Added (GSVA) Estimates with Base Year 2022-23: A standardized policy framework established to ensure consistency, reliability, and comparability in compiling state-level economic estimates across India.
Ministry of Statistics and Programme Implementation (MoSPI): The primary ministry responsible for updating the base year of National Accounts and overseeing the adoption of new estimation practices by States and Union Territories.
Sub-Committee on Regional Accounts: A technical body under the Advisory Committee on National Accounts Statistics (ACNAS), chaired by Prof. Ravindra H. Dholakia, tasked with reviewing methodologies for state and district economic products.
Finance Commission: A key constitutional body that utilizes GSDP estimates to assess fiscal capacity and recommend the distribution of Central taxes among States.
Department of Expenditure (DoE): A department under the Ministry of Finance that uses GSDP data to fix borrowing limits for States under the national fiscal responsibility framework.
Ministry of Statistics & Programme Implementation
Release of Uniform Guideline for Compilation of
Gross State Value Added (GSVA) Estimates with
Base Year 2022-23
Posted On: 07 MAY 2026 4:11PM by PIB Delhi
The Ministry of Statistics and Programme Implementation (MoSPI) has updated the base year of the
National Accounts to 2022–23. This revision aims to more accurately capture the current structure of the
economy by incorporating modern data sources and improved estimation practices with evolving
international standards. In line with this change, States and Union Territories are required to adopt the new
base year for compilation of Gross State Domestic Product (GSDP), ensuring greater accuracy,
consistency and comparability in assessing regional economic performance.
To guide this transition, the Advisory Committee on National Accounts Statistics (ACNAS) formed a Sub-
Committee on Regional Accounts, chaired by Prof. Ravindra H. Dholakia, Former Professor at IIM
Ahmedabad, with members from State Governments, the Reserve Bank of India (RBI), NITI Aayog,
Academia and Research Institutions. Its mandate is to review concepts, methodologies and emerging data
sources for compiling State Domestic Product (SDP) and District Domestic Product (DDP).
The key priorities in compiling Gross State Value Added (GSVA) and GSDP (GSDP = GSVA + Net Taxes
on Products) are:
Expanding data integration: Incorporating administrative records, sectoral databases, and survey
inputs to improve coverage and reliability.
Refining methodologies: Updating estimation techniques to better reflect the evolving economy,
especially in emerging service sectors and unincorporated enterprises.
Ensuring alignment with national aggregates: Maintaining consistency between national and
state-level estimates to strengthen comparability with national aggregates.
Standardizing practices: Promoting uniform, transparent and comparable methods across States
and UTs for Regional Accounts Statistics.
GSDP is essential for measuring the economic performance of individual States. It serves as the primary
indicator for analyzing the sectoral growth in State and industrial output, enabling effective fiscal
planning, tax collection and competitive development among States.
GSDP is a critical metric in India’s fiscal federalism structure. GSDP is extensively used by the Ministry
of Finance, Finance Commission, Comptroller and Auditor General (CAG) and other stakeholders for
fiscal devolution, policy formulation, resource allocation, budgeting, performance assessment and inter-
state comparisons.
In particular, the Finance Commission utilizes GSDP estimates to assess the fiscal capacity and relative
economic position of States while recommending the distribution of Central taxes among them. Indicators
such as per capita GSDP Distance from the average of top three highest per capita GSDP States, areimportant criteria in determining tax devolution and promoting balanced regional development and fiscal
equity.
Further, Department of Expenditure (DoE), Ministry of Finance uses GSDP estimates for fixing the
borrowing limits of States under the fiscal responsibility framework, as the permissible borrowing ceiling
is generally determined as a percentage of GSDP.
At present, 34 States/UTs are compiling GSDP estimates with base year 2011-12, except Lakshadweep
and Dadra & Nagar Haveli and Daman & Diu (DNH&DD). In the new series with base year 2022–23,
MoSPI is making concerted efforts to onboard all States/UTs, including Lakshadweep and DNH&DD, to
ensure complete national coverage and uniformity in the compilation of Regional Accounts Statistics.
The draft guideline for compilation of GSVA was placed on the website of the Ministry of Statistics and
Programme Implementation (MoSPI) on 7th April, 2026 for wider dissemination and stakeholders
feedback up to 27th April, 2026. Based on the comments and suggestions received, the Uniform Guideline
for the compilation of Gross State Value Added (GSVA) with Base Year 2022-23 has been finalized. This
guideline will provide a standardized framework aimed at ensuring consistency, reliability and
comparability of State-level estimates across all States/UTs.
The final Guideline is now available on the official website of MoSPI (https://www.mospi.gov.in/product/
more/6-Documents).
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