New GDP series to sharpen lens on household, informal economy contributions

The government will release the new series of GDP data on Friday at 4 p.m., with officials indicating that the revised methodology will significantly improve the accuracy of estimates for the household and informal sectors, long considered among the most complex segments of the economy to measure.

One of the most notable changes in the new series is a shift in how the household sector is captured. Earlier estimates relied heavily on extrapolations from a base year using proxy indicators. In the revised framework, however, annual “level” estimates will be compiled using regular surveys such as the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS). This is expected to reduce dependence on trend-based assumptions and allow a more dynamic, real-time assessment of household economic activity.

Government officials said this would lead to more reliable measurement of self-employed workers, small unincorporated enterprises and other informal economic actors that form a substantial part of India’s output and employment base.

Importantly, the contribution of households as employers of domestic personnel, including cooks, drivers and cleaners will continue to be explicitly accounted for in GDP calculations. These estimates are derived from survey-based data on the number of such workers and their wages, ensuring that paid domestic work remains embedded in national income statistics.

The revised series also seeks to better capture emerging areas such as gig and platform-based work, particularly where these fall within the unincorporated or household sector. Dedicated activity codes and improved survey coverage are expected to plug earlier data gaps.

Officials maintain that these methodological refinements, along with more granular deflators and updated ratios, will enhance the credibility, transparency and international comparability of India’s growth numbers.