India Says No to UPI Data in New GDP Series
India’s Ministry of Statistics and Programme Implementation (MoSPI) has announced that the upcoming revised GDP series (with base year 2022–23) will not include Unified Payments Interdata-face (UPI) transaction data as part of the official estimation process. This revised series is expected to be released this week.Why Was UPI Data Considered?UPI transactions — covering huge volumes of digital payments — had been proposed as a potential alternative data source to help estimate one key component of GDP called Private Final Consumption Expenditure (PFCE), which tracks household spending. The thought was that transaction values and counts from UPI could reflect real consumption patterns in the indian economy.Why UPI Data Won’t Be UsedMoSPI and its advisory committee decided not to use UPI data yet, citing several problems:1. Unstable and Incomplete CoverageUPI data is still unbalanced and evolving rapidly, so it doesn’t fully capture all household consumption patterns across the economy. Significant spending still happens through non‑digital means or outside UPI.2. Classification ChallengesMost UPI transactions are tagged using broad merchant category codes. For example, a single code might cover a supermarket selling food, clothes, electronics, etc. — making it hard to assign spending accurately to specific consumption categories used in GDP.3. Inclusion of Non‑Consumption TransactionsSome UPI transfers relate to non‑consumption activities (like debt servicing or transfers between accounts), which do not reflect consumer spending and therefore are not suitable for GDP calculations.What the New GDP Framework Will Use InsteadInstead of UPI data, the revised methodology will:
✔️ The move is based on concerns about instability, classification issues, and incomplete coverage.
✔️ The revised GDP methodology will use other modern data sources and improved statistical techniques for more accurate economic measurement. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
- Rely on traditional and high‑frequency sources such as GST data, vehicle registrations (Vahan), household surveys, and administrative records.
- Improve price deflation techniques using more granular price indices from both Consumer Price Index and Wholesale Price Index.
- Update the base year and revise historical series to reflect current economic structure.
✔️ The move is based on concerns about instability, classification issues, and incomplete coverage.
✔️ The revised GDP methodology will use other modern data sources and improved statistical techniques for more accurate economic measurement. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.