India's GDP calculation more accurate than ever: Jahangir Aziz | Political Economy

UPDATE - follow-up to India's GDP calculation more accurate than ever: Jahangir Aziz | Political Economy. According to JP Morgan's Co-head of Macroeconomic Research, Jahangir Aziz, India's GDP methodology has become significantly more robust, aligning with the methodologies of other major economies. The switch to the double deflator and Producer Price Index has presented a more accurate picture of growth than ever before. This shift is attributed to the adoption of a more comprehensive approach to calculating GDP, which now includes a wider range of factors. As a result, JP Morgan had estimated India's first quarter growth rate for FY 27 to be at 8 per cent. The upgraded methodology is expected to have a positive impact on the country's economic performance, providing a more accurate representation of its growth trajectory. This change is in line with the recommendations made by the World Bank and the International Monetary Fund, which have also expressed support for the new approach. The upgraded methodology is expected to have a positive impact on the country's economic performance, providing a more accurate representation of its growth trajectory. This change is also seen as a significant step forward in India's efforts to improve its economic indicators, which have been a subject of criticism in recent years. Earlier report (2026-09-10 10:59): India's GDP calculation has been revamped to provide a more accurate picture of the country's economic growth. According to Jahangir Aziz, Co-head of Macroeconomic Research at JP Morgan, the new methodology adopted by India is in line with the approach used by most major economies to calculate GDP. JP Morgan had initially estimated India's first-quarter growth rate for FY 2027 to be at 8 per cent. However, the switch to a double deflator and Producer Price Index has presented a more accurate picture of growth. In a detailed interview, Aziz explained the reasoning behind the change. The new methodology takes into account both the wholesale price index and the retail price index, providing a more comprehensive view of inflation. The switch has also led to a significant revision of India's GDP figures, with the country's growth rate now expected to be higher than initially estimated. The change is seen as a major step forward for India's economic data, which has faced criticism in the past for its lack of transparency and accuracy. The new methodology is expected to provide a more reliable benchmark for the country's economic growth, allowing policymakers to make more informed decisions. Aziz noted that the change is not just about accuracy, but also about consistency. India's GDP calculation has been a subject of debate for many years, with some arguing that the country's unique economic landscape makes it difficult to accurately measure growth. However, the switch to a double deflator and Producer Price Index has helped to address these concerns. The new methodology is seen as a major victory for India's economic policymakers, who have worked tirelessly to improve the accuracy and transparency of the country's GDP data. The change is expected to have a significant impact on the country's economic planning and policy-making, allowing for more targeted and effective interventions. With the new methodology in place, policymakers can now rely on a more accurate picture of India's economic growth, enabling them to make better decisions about investments, taxation, and other key policy areas. The switch to a double deflator and Producer Price Index has also raised questions about the potential impact on inflation, with some economists warning that the change could lead to higher prices. However, Aziz noted that the new methodology is designed to account for these factors, providing a more nuanced view of the economy. In the end, the switch to a double deflator and Producer Price Index is seen as a major step forward for India's economic data, providing a more accurate and reliable benchmark for the country's economic growth.