UPSC Prelims Practice Questions — A revision of GDP and its implications

Question 1

With reference to the new series of GDP estimates released by the National Statistical Office (NSO) in February 2026, consider the following statements regarding its key features:
1. The base year has been shifted from 2011-12 to 2022-23.
2. The new series has fully adopted the United Nations System of National Accounts (SNA), 2025 framework.
3. The methodology introduces "Double Deflation" wherein output and intermediate consumption are separately deflated to derive value added at constant prices.
4. The Advisory Committee on National Account Statistics (ACNAS) that guided the revision was chaired by Prof. B.N. Goldar.
Which of the above is/are correctly identified?

Accepted Answer

1, 3 and 4

Answer

1, 2 and 3

Answer

2, 3 and 4

Answer

1, 2 and 4

Question 2

With respect to differences between the new GDP series (base year 2022-23) and the earlier series (base year 2011-12), consider the following statements:
1. The size of GDP at current prices in the new series is estimated to be about 3-4% lower than under the 2011-12 series.
2. The share of manufacturing in Gross Value Added has been revised marginally upward (from about 14.3% to about 14.7%).
3. For estimating value added at constant prices, the new series replaces single deflation with double deflation.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3

Answer

1 only

Answer

1 and 2 only

Answer

2 and 3 only

Question 3

The Advisory Committee on National Account Statistics (ACNAS), whose recommendations underpinned India's new GDP series with base year 2022-23 released in February 2026, was chaired by:

Accepted Answer

B.N. Goldar

Answer

Bibek Debroy

Answer

C. Rangarajan

Answer

Pronab Sen

Question 4

Consider the following statements about the new series of National Accounts released by NSO in February 2026:
1. The previous base year that has now been replaced was 2004-05.
2. The base year 2022-23 was selected because it was assessed as a normal post-COVID year with comprehensive sectoral data availability.
3. The back-series of estimates under the new base year is scheduled to be released by December 2026.
4. India has, with this release, fully transitioned its National Accounts to the SNA 2025 framework.
Which of the above is/are NOT correctly described?

Accepted Answer

1 and 4

Answer

1 and 3

Answer

2 and 4

Answer

3 only

Question 5

In the context of the methodological changes introduced in India's new GDP series with base year 2022-23, the term "Double Deflation" refers to:

Accepted Answer

Separately deflating output and intermediate consumption by their respective price indices to derive Value Added at constant prices.

Answer

Deflating nominal GDP simultaneously by the GDP deflator and the Consumer Price Index, and averaging the two resulting series.

Answer

Subtracting product subsidies twice from product taxes to arrive at Gross Value Added at basic prices.

Answer

Adjusting nominal GDP first for inflation and then for population growth to obtain real per-capita GDP.

UPSC Prelims Practice Questions — A revision of GDP and its implications

Q3. The Advisory Committee on National Account Statistics (ACNAS), whose recommendations underpinned India's new GDP series with base year 2022-23 released in February 2026, was chaired by:

Q5. In the context of the methodological changes introduced in India's new GDP series with base year 2022-23, the term "Double Deflation" refers to: