16/10/26, "GDP is not a perfect measure, but it is a good measure."

India needs to sustain economic growth of 8-9 per cent over the next two decades to realise its long-term development ambitions, even as the country moves towards a broader framework for measuring economic progress beyond gross domestic product (GDP), Statistics Secretary Saurabh Garg said on October 16.

India should aspire to expand its economy nearly ninefold over the next 20 years, Garg said, emphasising that such an ambition would require sustained high growth.

"It is the right time to be young in India," Garg said, arguing that the country's economic momentum could continue for another two decades, provided it maintained its growth trajectory.

GDP a useful but imperfect measure

While acknowledging the limitations of GDP as an indicator of economic progress, Garg said it remained a useful measure of economic activity.

 "GDP is not a perfect measure, but it is a good measure."

However, the changing structure of the economy and the emergence of new sources of economic value have created a need to expand the way economic activity is measured.

One such area is data, which is increasingly emerging as an additional factor of production, complementing traditional inputs and improving their productivity.

Data can enhance the effectiveness of existing factors of production while also functioning as a productive resource in its own right, Garg said, adding that economic measurement frameworks must evolve to capture its contribution.

Accounting for natural resource depletion

He also emphasised the importance of accounting for natural resource depletion as India works towards its Net Zero ambitions.

The revised System of National Accounts (SNA) 2025 gives greater prominence to net measures of economic activity that account for depreciation and natural resource depletion, allowing policymakers to assess growth alongside its implications for sustainability.

Report by Ishan Gera

Source: Network18 

Well-being to gain prominence

Beyond economic output and environmental sustainability, Garg highlighted the importance of tracking well-being as part of the revised national accounting framework.

The revised framework is expected to become applicable in India from 2028–29