NO UPI Data: New GDP Series Will Not Use UPI Transaction Data

New GDP Series Will Not Use UPI Transaction Data

The Ministry of Statistics and Programme Implementation (MoSPI) has decided not to use Unified Payments Interface (UPI) transaction data in India's new GDP series with base year 2022-2023, citing instability and classification limitations.

Why UPI Data Didn't Make the Count

UPI transactions are often grouped into broad buckets, making it difficult to bifurcate spending into specific categories. Additionally, a significant portion of the population is still transitioning from cash to digital, making UPI transaction data an unreliable primary indicator for GDP.

Key Features of the New GDP 2022-23 Series

• Capturing the Gig Economy: The series will more accurately track workers on digital platforms like delivery partners and freelancers using GST records and company annual audits or reports.
• Double Deflation Method: MoSPI will use this method to calculate the GDP, which will provide a more accurate picture of the country's economic growth.
• New Base Year: The new GDP series will have a base year of 2022-23, which will reflect modern consumption patterns, new industries, and current price levels.

Importance for Students

This update is crucial for students studying economics and finance, as it highlights the importance of accurate data in calculating a country's GDP. It also shows how the government is working to improve the GDP calculation method to better reflect the country's economic growth.

Source

Jagran Josh