Which of the following statements is/are correct regarding the calculation of GDP in India?
1. The new GDP series released by MoSPI revised the base year for national accounts from 2011-12 to 2022-23.
2. Real GDP is calculated using current year prices, allowing it to capture the effects of inflation on economic growth.

Question

Accepted Answer

A) 1 only — Statement 1 is correct as MoSPI has updated the base year to 2022-23. Statement 2 is incorrect because Real GDP is calculated using constant 'base year' prices to remove the effects of inflation; Nominal GDP is the metric calculated using current year prices.

MoSPI Releases New GDP Series with Base Year 2022-23

Release of SIPRI Top 100 Arms-producing Companies Report