The National Statistics Office (NSO), MoSPI, has issued a draft guideline for compiling Gross State Domestic Product (GSDP) estimates using the expenditure approach with base year 2022‑23.
MINISTRY / DEPARTMENT
Government of India
GOVERNMENT ACTION
Not specified
FUND / OUTLAY
rs.
BENEFICIARY / TARGET
Not specified
🎯 UPSC Prelims — Facts Worth Remembering
- the guideline aims to enable compilation of these components at State/UT level. - Emphasis on using State‑specific data sources and appropriate allocation indicators
- base year mentioned (2022‑23)
WHAT IS THE NEWS?
The National Statistics Office (NSO), MoSPI, has issued a draft guideline for compiling Gross State Domestic Product (GSDP) estimates using the expenditure approach with base year 2022‑23. The document is released for consultation and available on the MoSPI website; feedback is invited up to 28 October 2026. ([pib.gov.in](
KEY FACTS
- The draft sets out concepts, coverage, data sources and estimation procedures for expenditure components: Private Final Consumption Expenditure (PFCE), Government Final Consumption Expenditure (GFCE), Gross Fixed Capital Formation (GFCF), Changes in Inventories, Valuables and Net Exports.
- Currently, some States/UTs compile GFCF and GFCE, but PFCE is not compiled by any State/UT; the guideline aims to enable compilation of these components at State/UT level.
- Emphasis on using State‑specific data sources and appropriate allocation indicators; where direct data are unavailable, recommended allocation methods are provided.
- Goal: harmonise estimation practices across States/UTs and improve consistency with national accounts.
- Draft is available on MoSPI site for wider dissemination and feedback until 28 Oct 2026. ([pib.gov.in](
WHY IS IT IMPORTANT?
- Data quality and comparability: A standardised expenditure‑side methodology improves the reliability and comparability of State economic statistics, which underpin policy, planning and resource allocation.
- Fiscal and policy planning: Better GSDP measurement affects devolution formulas, performance assessment, and evidence‑based regional policy decisions.
- Academic and UPSC relevance: Methodological changes in national/state accounts are foundational for questions on macroeconomic measurement, fiscal federalism and development indicators.
UPSC PRELIMS ANGLE
- Key factual points: MoSPI/NSO released a draft guideline on 09 Oct 2026; base year mentioned (2022‑23); consultation deadline (28 Oct 2026). These are potential fact‑based items for current affairs in prelims. ([pib.gov.in](
UPSC MAINS ANGLE
- Economy (GS3): Discuss significance of compilation methodologies (production vs. expenditure approach) for GDP/GSDP, and implications for measuring consumption, investment and inter‑state comparisons.
- Governance & public policy (GS2/GS3): Analyse how improved sub‑national statistics strengthen fiscal federalism, targeted schemes and monitoring of development indicators.
- Evaluation: Comment on practical challenges (data availability at State level, capacity of DESs) and suggest capacity building and administrative reforms needed to implement the guideline effectively.
KEY TAKEAWAYS
- MoSPI is moving to harmonise State‑level national accounts by publishing an expenditure‑side guideline with base 2022‑23.
- The draft aims to enable States/UTs to compile PFCE, GFCE and GFCF more consistently, improving the statistical basis for policy.
- Stakeholders have until 28 Oct 2026 to submit feedback — worth noting for researchers, state DES units and students tracking methodology changes. ([pib.gov.in](