<h4>Advisory Committee Formation for New Base Year</h4><p>In <strong>June 2024</strong>, the <strong>Ministry of Statistics and Programme Implementation (MoSPI)</strong> took a significant step towards updating India's economic data framework. They established a <strong>26-member Advisory Committee on National Accounts Statistics (ACNAS)</strong>.</p><p>This committee's primary role is to deliberate and decide on the <strong>new base year for Gross Domestic Product (GDP) data</strong>. The move is crucial for accurately reflecting the structural changes in the Indian economy.</p><div class='info-box'><p><strong>Committee Head:</strong> The <strong>ACNAS</strong> is chaired by <strong>Biswanath Goldar</strong>, an eminent expert in the field of national accounts statistics.</p></div><h4>Committee's Mandate and Alignment</h4><p>Beyond just selecting a base year, the <strong>ACNAS</strong> has a broader mandate. It will also address the critical issue of aligning <strong>GDP</strong> data with other key macro-economic indicators.</p><p>This alignment is essential for a coherent understanding of the economy. The indicators under consideration for synchronization include the <strong>Wholesale Price Index (WPI)</strong>, the <strong>Consumer Price Index (CPI)</strong>, and the <strong>Index of Industrial Production (IIP)</strong>.</p><div class='key-point-box'><p><strong>Why Alignment Matters:</strong> Ensuring consistency across these indicators provides a more holistic and less fragmented view of economic performance, aiding better policy formulation.</p></div><h4>Potential New Base Years Under Consideration</h4><p>The committee is currently evaluating a couple of options for the new base year. The discussions indicate a strong inclination towards adopting <strong>2022-23</strong> as the new base year for <strong>GDP</strong> calculations.</p><p>However, the subsequent fiscal year, <strong>2023-24</strong>, is also being actively considered as a viable alternative. The final decision will depend on various data availability and methodological considerations.</p><div class='exam-tip-box'><p><strong>UPSC Insight:</strong> Questions on <strong>National Income Accounting</strong> often involve the concept of the <strong>base year</strong>. Understanding the process of its selection and its implications for economic data is vital for both <strong>Prelims</strong> (factual recall) and <strong>Mains</strong> (analytical discussion in <strong>GS Paper 3</strong>).</p></div>