India’s economic metric to shift? Govt considers possibility of adopting NDP as main measure over GDP: Report

India is planning to shift to net domestic product (NDP) as its main measure of economic activity, moving away from gross domestic product (GDP), in line with the United Nations’ System of National Accounts (SNA) 2025 guidelines. The change is expected to be implemented from 2029–30, according to official sources quoted by Economic Times.The statistics ministry reportedly established a sub-committee under the advisory Committee to look a a possible transition process along with data and methodological changes that would be required in the framework. Unlike the GDP, the NDP takes into account the depreciation of assets and the depletion of natural resources, providing a better representation of the real cost of production.At present, GDP remains India’s primary economic indicator, though annual NDP estimates are published. Quarterly NDP data is not yet released. Officials, quoted by ET, say the shift will make economic measurement more comprehensive and realistic.Separately, India is also updating its GDP calculations by changing the base year to 2022–23 from the current 2011–12. The revised series is scheduled to be released on February 27 and will continue to follow the SNA 2008 framework.The new accounting system will also change how the central bank’s activities are treated. The Reserve Bank of India’s output will be classified as non-market activity, and payments made by banks for regulatory services will be treated as transfers rather than service fees. Officials said this will not affect national savings or net worth.Recent data shows strong economic performance, with GDP growth rising to 8.2 per cent in the second quarter of FY26, the fastest pace in six quarters. Both GDP and NDP grew by 6.5 per cent in FY25 as compared to its preceding year.