As part of the changes to the framework, the world’s fastest-growing economy<\/a> will shift the gross domestic product base year to financial year 2023 from 2012. <\/p>\n The improved capture of faster-growing segments of the economy suggests that “the measured growth trajectory is likely to be structurally higher under the new series,” Hermann said.<\/p>\n Both private consumption and gross fixed capital formation grew by more than 7.0% growth rate in the current financial year.<\/p>\n “Manufacturing sector has been the major driver in contributing to the resilient performance of the economy in consecutive 3 financial years after rebasing,” MoSPI said in the release.<\/p>\n In a report last year, the International Monetary Fund had raised concerns over the accuracy of the Indian government’s economic data and assigned<\/a> it a “C grade” rating, its second-lowest rank. <\/p>\n The government data has limitations, such as the use of “an outdated base year (2011\/12)” and the use of wholesale price indices and single deflation for calculating inflation, all of which can distort real economic measures, the IMF said in its report. <\/p>\n “The new GDP series will largely address the concerns of the IMF, and as a result, we expect that their assessment and rating of India’s national accounts data will change,” Saurabh Garg, secretary at MoSPI, said in an interview<\/a> with local media on Thursday.<\/p>\n Domestic consumption, tariffs<\/p>\n During the December quarter, the Indian economy saw a selective uptick in domestic consumption of gold<\/a> and automobiles<\/a> due to the festive season. However, this was also the first full quarter when Indian exporters felt the brunt<\/a> of the U.S.’ 50% tariffs.<\/p>\n Indian exports to the U.S. have been facing those tariffs<\/a>\u00a0since August last year, but the two countries have now agreed<\/a> to an interim trade deal that reduced the tariffs to 18%. <\/p>\n However, the situation has been further complicated after the U.S. Supreme Court outlawed<\/a> much of President Donald Trump’s tariff regime last Friday. Washington is now levying a global tariff rate of 10% and has threatened to raise it higher.<\/p>\n The economic survey released last month noted that India’s economic growth has not been hampered by the slowdown in exports to the U.S.<\/p>\n![\"India's](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/02\/108270796-17721737291772173727-44250171053-1080pnbcnews.jpg\")
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