Stories
MoSPI Revamps GDP Framework to Track State Consumption and Investment
M
Moneycontrol•09-10-2026, 18:08
MoSPI Revamps GDP Framework to Track State Consumption and Investment
- •India is transitioning to a new framework to measure household consumption and private investment at the state level using the expenditure approach.
- •The Ministry of Statistics and Programme Implementation guidelines propose estimating Gross State Domestic Product by capturing spending by households, governments, and businesses.
- •Household Consumption Expenditure Survey data combined with population projections will be used to estimate Private Final Consumption Expenditure across states.
- •Administrative datasets including the Vahan portal, electricity sales, and Reserve Bank of India data will track spending categories where survey data are insufficient.
- •New methodologies will also estimate private corporate investment across states by utilizing national capital-output ratios and state-level Gross Value Added.
Key Questions Answered
MoSPI is proposing to estimate Gross State Domestic Product (GSDP) using the expenditure approach, which captures spending by households, governments, and businesses, alongside exports and imports, instead of solely relying on the production approach.
State-wise per capita household expenditure from the Household Consumption Expenditure Survey (HCES) will be combined with population projections to derive the shares used to distribute national consumption estimates across states.
MoSPI proposed using domestic electricity sales from the Central Electricity Authority, petroleum ministry data for LPG and kerosene, Vahan portal data for vehicle sales, and RBI data on deposits and personal loans.
