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What is the primary motivation behind the update of India's GDP base year from 2011-12 to 2022-23?
  • a)
    To increase government revenue
  • b)
    To provide a more accurate reflection of current economic conditions
  • c)
    To simplify the calculation process
  • d)
    To align with international standards
Correct answer is option 'B'. Can you explain this answer?
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What is the primary motivation behind the update of India's GDP base y...
The update of India's GDP base year to 2022-23 is aimed at providing a more accurate reflection of current economic conditions. This change is necessary to account for shifts in economic activities, consumption patterns, and industry developments that have occurred over the last decade. An updated base year ensures that GDP data accurately represents the contemporary landscape of the economy, which is crucial for effective policy-making and economic planning. Interestingly, an updated GDP base year can also lead to revisions of past GDP rates, offering a clearer picture of economic growth trends over time.
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What is the primary motivation behind the update of India's GDP base year from 2011-12 to 2022-23?a) To increase government revenueb) To provide a more accurate reflection of current economic conditionsc) To simplify the calculation processd) To align with international standardsCorrect answer is option 'B'. Can you explain this answer?
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