Statistics Ministry Eyes NDP As Main Growth Indicator Amid Global SNA 2025 Push

New Delhi, Jan 6 (KNN) The statistics ministry is considering a shift from Gross Domestic Product (GDP) to Net Domestic Product (NDP) as the primary measure of economic growth, media report said. 

Global Push Under SNA 2025 Framework

The System of National Accounts 2025 (SNA 2025) has explicitly encouraged greater emphasis on net measures of output. While GDP will continue to be compiled, the new framework argues that NDP offers a conceptually cleaner picture of economic progress. 

The pre-edit release of SNA 2025 states that although GDP has been the main measure of domestic production, NDP, is conceptually more robust, and countries are encouraged to compile it alongside GDP, reported Money Control.

India already publishes NDP alongside GDP, but it has never been the headline growth metric. The gap between the two is significant. In FY25, India recorded nearly Rs 37 lakh crore in depreciation, bringing NDP down to Rs 293.9 lakh crore compared with a GDP estimate of Rs 330.7 lakh crore. 

SNA 2025 notes that as policymakers focus more on well-being and sustainability, net measures, reflecting actual production costs, are seen as conceptually superior to gross measures.

Upcoming GDP Base Year Revision in 2026

India is preparing for a major statistical reset. The government is set to release a new GDP series in February 2026, revising the base year to 2022–23 from 2011–12 after nearly a decade.

The revised series is expected to address concerns raised by institutions such as the International Monetary Fund, which has recently flagged questions around India’s growth estimates.

The new methodology is also expected to rely more heavily on high-frequency and administrative data sources, including e-Vahan vehicle registrations and UPI transactions, to better capture structural changes in the economy.

(KNN Bureau)