The statistics ministry has scrapped the decades-old production-based model for calculating state GDP, opting instead for an expenditure approach. This method tracks household spending, government outlays, capital investments, and net trade, offering a more granular view of economic activity.
The new manual explicitly logs modern household costs, ranging from OTT streaming subscriptions and DTH fees to specialized personal care items like face washes and electric grooming tools. This move reflects the growing influence of consumer habits on state economies.
By shifting to the expenditure method, the ministry seeks to provide a more accurate picture of how money flows within states, capturing the nuances of contemporary spending patterns. This change is expected to influence policy decisions and resource allocation based on more precise economic data.